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Childcare subsidies Group of answer choices a) All of these answers are correct. b) are unrelated...

Childcare subsidies

Group of answer choices

a) All of these answers are correct.

b) are unrelated to women’s labor force participation rates.

c) will only increase the labor force participation of parents if childcare is a variable cost.

d) increase the probability of labor force participation among parents who were out of the labor force before the subsidy.

e) can only increase the market hours of parents already participating in the labor market.

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Answer #1

Childcare subsidies is used by working parents as the childcare provided by the government is at subsidies rate. Labour force which are not available due to the high cost of childcare will now be available , as they are getting subsidy. This will effect their opportunity cost of not being in labour force.

So childcare subsidy will increase the probability of labour force participation among parents those where out of labour force before subsidy . Correct answer is D

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