Simulating the Behavioural Effects of Welfare Reforms Among Sole Parents in Australia

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Author
DUNCAN, ALAN; Harris, Mark N.Date
2001-06University of Melbourne Author/s
HARRIS, MARK NORMANAffiliation
Economics and Commerce: Melbourne Institute of Applied Economic and Social ResearchMetadata
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PreprintCitations
Duncan, Alan and Harris, Mark N. (2001) Simulating the Behavioural Effects of Welfare Reforms Among Sole Parents in Australia.Access Status
Open AccessDescription
This paper forms part of a larger project on behavioural microsimulation being carried at the Melbourne Institute, the University of Melbourne.
Abstract
This paper derives and estimates an econometric model of labour supply among sole parents in Australia, using modelling techniques which treat the labour supply decision as a utility maximising choice between a given number of discrete states. In estimation, we control for random preference heterogeneity as well as fixed and search costs. Using our econometric model, we look at the effects of actual and hypothetical welfare policy reforms on the employment choices of sole parents in Australia. The microsimulation results presented in this paper use the Melbourne Institute Tax and Transfer Simulator (MITTS), developed at Melbourne Institute of Applied Economic and Social Research.
Keywords
labour supply; sole parents; Melbourne Institute Tax and Transfer Simulator(MITTS)Export Reference in RIS Format
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