Skip to content
Government Federal, Political

Free childcare will do little to increase female workforce participation

e61 Institute 2 mins read

e61 Institute Research Economist Erin Clarke is available to comment on how e61 Institute research supports the Productivity Commission’s finding that the effects of free and/or more subsidised childcare would actually have a relatively insignificant effect of female workforce participation.

e61 Research Economist Erin Clarke:

“Childcare has a proven impact on childhood development and its broadening can therefore be considered a valuable policy goal on those grounds alone. However, if the goal is to lift female workforce participation, policymakers will need to look beyond changes to the childcare system.

“The impact of cheaper childcare on women’s work is not as straightforward as one may think.

“As the Productivity Commission report makes clear, increasing childcare subsidies for low-to-middle income households may not on its own be sufficient to encourage mothers to increase their labour supply. Their estimates of the negligible to small impacts of increased childcare subsidies on female participation across a range of proposed options is broadly consistent with soon to be released e61 research.”

“The decision of mothers to work, or work more hours, is impacted by a range of factors. One of these factors is the cost of childcare but, for lower-income families, the interaction of the tax and transfer system will also have an impact on their decision to work (e61 research). For many, as they work more hours and their income increases, they are eligible for fewer benefits, which could create a disincentive to additional work.”


About us:

e61 Institute is a non-partisan economic research institute.

We combine innovative data with state-of-the-art tools from economics, data science and statistics to answer the most important economic questions facing Australia.

e61 was born from a motivation to bring together problem-solvers from academia, industry and government to push the knowledge frontier so that we can tackle the big problems facing our society.


Contact details:

Anil Lambert 0416 426 722

More from this category

  • Environment, Government Federal
  • 20/12/2024
  • 11:18
Australian Conservation Foundation

Assess NT fracking under national environment law

Concerns raised by an independent expert scientific committee should prompt Environment Minister Tanya Plibersek to use her expanded water trigger powers to assess Northern Territory gas fracking proposals, the Australian Conservation Foundation said. While the ‘plain English summary’ of the Expert Scientific Committee on Unconventional Gas says the potential impacts on the Beetaloo Basin’s water resources from exploration activities would be ‘minor’, that description is not used in the rest of the report. The panel states that exploration activities ‘will likely lead to further production, exploration and appraisal which will inevitably intensify impacts.’ “The whole purpose of initial gas fracking…

  • Government Federal, Transport Automotive
  • 20/12/2024
  • 10:20
The Climate Council

New year, new gear: New Vehicle Efficiency Standard revs off the starting line at the stroke of midnight

FOR IMMEDIATE RELEASE FRIDAY 20TH DECEMBER 2024 New year, new gear: New Vehicle Efficiency Standard revs off the starting line at the stroke of midnight The Albanese Government’s New Vehicle Efficiency Standard (NVES) that will come into effect on January 1 will see cleaner and cheaper to run cars sold in Australia, cutting climate pollution produced by new cars by more than half. The policy is a huge win for our climate, our health and our hip-pockets, preventing 20 million tonnes of climate pollution by 2030. For more than two decades, uptake of low- and zero-emissions vehicles was held back…

  • Contains:
  • Environment, Government Federal
  • 19/12/2024
  • 17:25
Australian Conservation Foundation

Approving coal mines is the opposite of climate action

In response to Environment Minister Tanya Plibersek’s approval of three coal mine extensions – Boggabri, Caval Ridge and Lake Vermont Meadowbrook – the Australian Conservation Foundation’s climate program manager Gavan McFadzean said: “Approving coal projects is the opposite of climate action. “Together, these three coal mine extensions will generate more than 850 million tonnes of lifetime emissions, undermining Australia’s emissions targets and our claims to be a good global citizen and a good neighbour to Pacific nations. “Climate scientists and the International Energy Agency say the world cannot approve new coal and gas projects. “The Albanese government keeps trying to…

Media Outreach made fast, easy, simple.

Feature your press release on Medianet's News Hub every time you distribute with Medianet. Pay per release or save with a subscription.