Discuss the likely effects on labor force participation

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Assume that a state government currently provides no child care subsidies to working single parents, but it now wants to adopt a plan that will encourage labor force participation among single parents. Suppose child care costs are hourly, and that the government adopts a child care subsidy of $4 per hour for working parents. Discuss the likely effects on labor force participation and hours of work.

Reference no: EM13209597

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