Simulating the Behavioural Effects of Welfare Reforms Among Sole Parents in Australia
AuthorDUNCAN, ALAN; Harris, Mark N.
University of Melbourne Author/sHARRIS, MARK NORMAN
AffiliationEconomics and Commerce: Melbourne Institute of Applied Economic and Social Research
CitationsDuncan, Alan and Harris, Mark N. (2001) Simulating the Behavioural Effects of Welfare Reforms Among Sole Parents in Australia.
Access StatusOpen Access
This paper forms part of a larger project on behavioural microsimulation being carried at the Melbourne Institute, the University of Melbourne.
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.
Keywordslabour supply; sole parents; Melbourne Institute Tax and Transfer Simulator(MITTS)
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