Childcare Assistance: Are Subsidies or Tax Credits Better?

We evaluate price subsidies and tax credits for childcare. We focus on partnered women's labour supply, household income and welfare, demand for childcare and government expenditure. Using Australian data, we estimate a joint, discrete structural model of labour supply and childcare demand. We introduce two methodological innovations – a more flexible quantity constraint that total formal and informal childcare hours are at least as large as the mother's labour supply and the explicit inclusion of maternal childcare in the utility function as a proxy for child development. We find that tax credits are more effective than subsidies in terms of increasing average hours worked and household income. However, tax credits disproportionately benefit wealthier and more educated women. Price subsidies, while less efficient, have positive redistributional effects.     

Can Government Intervention in Childcare be Justified?

Childcare is not like other goods and services. Its inherent nature creates unusual challenges for efficient delivery by the market, while its usage can have social as well as private consequences. Government involvement in childcare may therefore be justified to improve the efficiency of delivery or achieve social objectives, but its effectiveness will depend on whether policy measures can better address the challenges of childcare provision than the market. This article reviews the justification for the recent rapid development of childcare policy in the UK and considers the potential benefits and drawbacks of this growing government intervention.     

Human resource management implications of dual-career couples

The dual-career couple is a contemporary phenomenon in Western industrialized nations. This Australian qualitative investigation explored the organizational issues associated with dual-career couples from the perspective of both dual-carrer couple members and their employing organizations. Overall, it was found that organizational responsiveness to dual-career issues was limited, and consequently dual-carrer couples themselves were forced to make most of the necessary accommodations. Human resource management implications of the dual-career couple are discussed. To date, however, such implications have been largely ignored by organizations. The findings of this study suggest that the failure of organizations to respond to dual-career issues results in costs, not only to the couple, but also to their employing organizations. Predictions for continued growth of the dual-career phenomenon mean that an organization s willingness to address dual-career issues may become an important element in achieving and retaining competitive advantage.     

Does Fathers’ Care Spill Over? Evaluating Reforms in the Swedish Parental Leave Program

The aim of reserving months for fathers in the Swedish parental leave system was to increase fathers’ use of leave as well as encourage gender equality in the home and labor market. Using data from the Swedish Social Insurance Agency, this study investigates the effects of the reform – reserving one month of leave for fathers in 1995 and a second month in 2002 – on gender equality in the home. The study uses the take up of the parental benefit for the care for sick children (CFSC) as a proxy for gender equality and follows parents’ use of CFSC for twelve years for the first reform and ten years for the second reform. Results indicate the first reform led to more equal leave sharing, mainly because use of the benefit decreased among mothers with low education, and at least in part fulfilled the aim of increasing gender equality in the home.