Business, 06.04.2021 01:00 chayaharroch03

3. Assume you are a policy maker with the objective of increasing labor force participation. You observe that parents of young children often drop out of the labor force. You are considering two alternative policies:1) Reduce the fixed costs of child care by providing a lump sum subsidy or 2) Provide an hourly subsidy for childcare. Please analyze the expected results of these alternative policies. Use graphs to illustrate each policy. Discuss which workers are likely to be impacted and which effects influence the labor supply decisions of these workers.

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3. Assume you are a policy maker with the objective of increasing labor force participation. You obs...

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