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

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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. The model is then used to look at the likely effects of actual and hypothetical welfare policy reforms. Model estimates are based upon net incomes generated by the Melbourne Institute Tax and Transfer Simulator (MITTS), developed at the Melbourne Institute in collaboration with the Department of Family and Community Services (FaCS).
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Document Type: Original Article

Affiliations: 1: University of Nottingham, Nottingham and the Institute of Fiscal Studies, London, United Kingdom, 2: University of Melbourne, Australia and Central European University, Budapest, Hungary

Publication date: September 1, 2002

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