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Childcare costs

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Abstract:

This indicator quantifies the out‐of‐pocket costs to families of purchasing centre‐based childcare. These costs take into account a wide range of factors, including fees charged by childcare providers as well as childcarerelated tax concessions and cash benefits available to parents. The cost figures are derived by comparing the disposable income, measured after deducting childcare expenses, of a family who does not purchase formal, centre‐based childcare with that of an otherwise similar family who does. Childcare cost estimates are disaggregated to identify the different policy instruments used by government to reduce such costs, and presented for different characteristics of individuals and households, with a focus on those parents whose employment decisions are particularly responsive to financial incentives to work: lone parents and second earners with young children requiring care.

Document Type: Review Article

Publication date: 2007-02-01

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