Suppose That the Government Is Considering Whether to Implement a Child

Essay

Suppose that the government is considering whether to implement a child care subsidy program for low-income families.
(a)Is this child care subsidy different from a wage subsidy to low-income families with children? Assume that all low-income families with children use formal child care in order to work.Explain.
(b)Why might the government want to regulate the quality of the child care? What problems might such regulation cause? Explain.