alt Hacker NewsI don't follow. Wouldn't the high cost of childcare make couples less likely to have 2 incomes, because the lower-earning spouse is working for lower marginal pay, just to pay someone ELSE to provide child care?
I don't follow. Wouldn't the high cost of childcare make couples less likely to have 2 incomes, because the lower-earning spouse is working for lower marginal pay, just to pay someone ELSE to provide child care?
I think he is talking about the threshold effects. E.g if one partner earns 200k then it could make more sense for the other to stay at home than to work and earn say 50k or 70k. The 50% subsidy above 230k reduces that issue but I would rather see no cap.