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In: Economics

Congress is considering providing a child-care subsidy of $50 per week to mothers that work at...

Congress is considering providing a child-care subsidy of $50 per week to mothers that work at least 16 hours per week. What are the labor market implications of such a program? Illustrate your discussion with the appropriate graphical analysis.

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Expert Solution

- If Congress is considering providing a child-care subsidy of $50 per week to mothers that work at least 16 hours per week. Labor market implications of such a program will be that the labor force participation of the women will increase.

- Women's labor force participation has quickly expanded in many nations. Childcare permits the essential guardian, as a rule the mother, to remove time from childrearing for business. Family policies that finance childcare and increment its accessibility effectsly affect female labor flexibly across nations.

- For policymakers to decide how well these policies work, they ought to consider that arrangement adequacy may rely upon nation explicit pre-change female business and profit, and childcare accessibility, expenses, and quality.

- Nations with a higher accessibility of moderate childcare show high maternal labor force participation rates.

- The arrangement of childcare, particularly for pre-school-matured youngsters, assists moms with accomplishing a good work−life balance.

- Higher childcare endowments bring about a considerable increment in childcare usage.

Policymakers must distinguish the best instruments when planning approaches for empowering maternal labor force participation. Putting resources into quality childcare offices, particularly for small kids, can help accomplish this objective. Openness, moderateness, and quality are immeasurably significant.


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