University of Wisconsin - Madison > % & 7 ~ ' Institute for Research on Poverty
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چکیده
In recent years, child care has become an important public policy issue, owing primarily to the significant increase in the labor force participation of women with young children. Consequently, a number of bills containing provisions to subsidize child care have been introduced into Congress. As a first step in considering possible behavioral responses to proposed child care subsidies, this paper presents estimates of a structural model in which a mother simultaneously chooses her labor status, whether or not to purchase market child care, and the quality of care purchased. The authors find that among mothers who work and purchase child care, an increase in wages does not result in a proportional increase in child care expenditures, and that a mother will not change the number of hours she works at her job, regardless of any child care subsidies or an increase in wages. Estimation results are also used to simulate the effects of two proposed changes in the federal child care tax credit. The simulation results indicate that the primary effect of a more generous credit is to allow working mothers who use free care to purchase higher quality market care. A Structural Model of Labor Supply and Child Care Demand
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Madison Institute for Research on Poverty
Under the title "Poverty and Public Policy: What Do We Know? What Should We Do?" the Institute for Research on Poverty and the Office of the Assistant Secretary for Planning and Evaluation at the U.S. Department of Health and Human Services held their third national conference to evaluate public policy efforts to address poverty and its concomitants.' The conference, which took place on May 28-...
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