This paper studies the effects of labour income taxation on growth in an OLG model where both formal schooling and child care enter the human capital production function as complements. We compare them with the effects obtained in a model where only formal schooling matters for skill formation....

The opportunity costs of rearing British children, in terms of cash earnings forgone by their mother, are estimated for a typical family. Data from the 1980 Women and Employment Survey provide estimates for hourly pay as a function of work experience and current hours of work. In addition, these...

In the early 1990s, the Dutch social partners agreed upon transforming the generous and actuarially unfair PAYG early retirement schemes into less generous and actuarially fair capital funded schemes. The starting dates of the transitional arrangements varied by industry sector. In this study,...

Recent models with liquidity constraints and impatience emphasize that consumers use savings to buffer income fluctuations. When wealth is below an optimal target, consumers try to increase their buffer stock of wealth by saving more. When it is above target, they increase consumption. This...

We show that measurement error in the constructed price of child care can explain why previous Australian studies have found partnered women’s labour supply to be unresponsive to child care prices. Through improved data and improved construction of the child care price variable, we find child...

The supply of formal childcare has expanded in many developed countries. There is ambiguity, however, in the theory that the entry of care providers increases consumers’ surplus and the welfare of households in a market with differentiated services, such as childcare. This study empirically...

Patterns of female employment participation are compared in a variety of European countries with differing levels of child care provision. The earnings forgone over a lifetime by a woman bearing children (compared with the earnings of her childless counterpart) are simulated for four countries,...

This paper formulates a model to examine the effects of changes in tax-benefit policy on the behavior of divorced parents and the well-being of children in single-parent households. Noncustodial parents choose the level of a child support payment to transfer to custodians. These, in turn, decide...

Using data from the HILDA (Household Income and Labour Dynamics), this paper examines the implications of child care costs on maternal employment status by distinguishing between full-time and part-time work. Our empirical approach uses an ordered probit model taking into account the endogeneity...