Abstract
When deriving an individual's labor supply curve, most labor economics textbooks ignore any monetary or time costs associated with working. However, students realize that this assumption is not realistic, particularly for working parents who have children in daycare. The author presents an analysis of how both monetary and time costs associated with working influences an individual’s reservation wage. Additionally the author compares how the aggregate supply of hours offered within a firm is influenced by that firm adopting a childcare subsidy benefit that either reduces the monetary costs or time costs associated with have a child in daycare.
Recommended Citation
(2026)
"The Influence that Time Costs and Money Costs Have on Work Incentives: An Application of Childcare Subsidies,"
Journal of Economics and Finance Education: Vol. 15:
Iss.
2, Article 8.
Available at:
https://scholarship.rollins.edu/jefe/vol15/iss2/8
