The average childcare cost in Toronto is $500 a week. Abby is a single mother in Toronto,
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Question:
The average childcare cost in Toronto is $500 a week.
Abby is a single mother in Toronto, who earns $25 an hour, and receives $800 a week in non-labour income. She chooses to work 45 hours a week.
Becca is also a single mother in Toronto. If she worked, Becca could earn $15 an hour and received $1000 in weekly non-labour income. She chooses not to work.
The government of Ontario is currently negotiating with the Federal Government of Canada a daycare program that would reduce the cost of daycare to $10 a day, or $50 a week.
Using income-leisure diagrams, explain how this program would influence the labour market decisions of Abby and Becca.
Related Book For
Managerial Economics Theory Applications and Cases
ISBN: 978-0393912777
8th edition
Authors: Bruce Allen, Keith Weigelt, Neil A. Doherty, Edwin Mansfield
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