Childcare subsidies have little impact, says study

By Melanie Defries, Nursery World, 29 July 2008

Government subsidises aimed at reducing the cost of childcare to parents have had little impact on increasing the number of mothers who return to work, an Australian study claims.

Research by the Centre for Independent Studies, using data collected by the Australian Bureau of Statistics and the Household Income and Labour Dynamics in Australia, found only a weak relationship between the cost of childcare and the female labour supply. It found that while government spending on childcare from 1974 to 2007 grew by 4,000 per cent, most of the increase in spending occurred from 1990 onwards. The proportion of working...

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