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

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    Simulating the Behavioural Effects of Welfare Reforms Among Sole Parents in Australia (530.2Kb)

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    Author
    DUNCAN, ALAN; Harris, Mark N.
    Date
    2001-06
    University of Melbourne Author/s
    HARRIS, MARK NORMAN
    Affiliation
    Economics and Commerce: Melbourne Institute of Applied Economic and Social Research
    Metadata
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    Document Type
    Preprint
    Citations
    Duncan, Alan and Harris, Mark N. (2001) Simulating the Behavioural Effects of Welfare Reforms Among Sole Parents in Australia.
    Access Status
    Open Access
    URI
    http://hdl.handle.net/11343/33670
    Description

    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)

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