The paper "Effective, Affordable, and Available Child Care System " is a great example of macro & microeconomics coursework. The key factors affecting childcare services in Australia include cost, availability, flexibility, and quality. An emerging trend in the sector is where childcare operators move to inner-city areas has led to uneven distribution of the services. The main forces driving the operators to such areas include high returns and occupancy. Women's participation in the workforce is lagging behind because of the high cost of childcare services as they are forced to leave the workforce to take care of their young ones.
Childcare services have a lot of effects on the economy because it influences the productivity of an economy. It also affects households, especially when they are not in a position to pay for the services. Description of the Main Issue An effective, affordable, and available child care system is important for any economy for it to maximize its productivity, leading to economic growth and development. Therefore, a country should have an efficient and effective childcare system, which is not always the case due to the many challenges the sector is facing.
Australia is one of the countries facing some challenges with its childcare systems (Wilkins and Cruger, 2014). Four main challenges facing the system in the county include are related to cost, availability, quality, and flexibility of childcare services. About 30% of households in Australia have problems with the high cost of childcare services and statistics shows that a family with one child spends about 9% of its disposable income on childcare services fees. Despite the high cost of childcare services, there is even uneven distribution of childcare operators in the country with the majority of them located in inner-city suburbs where there is a high chance of getting high returns and occupancy.
Consequently, low-income areas are neglected, leading to the unavailability of such areas. However, even those who are willing to pay more in the inner-city areas find it hard to secure a place due to high demand and limited, which has led to an increase in the price childcare services from a national average of $100 a day to about $170 a day (Wilkins and Cruger, 2014).
Gibbons, R., & Roberts, J. 2013. Economic theories of incentives in organizations. The Handbook of Organizational Economics, Princeton University Press, Princeton, NJ, 56- 99.
Saffron, D. Wilkins, G. and Cruger, C. 2014c. Quality childcare comes with a premium price tag. Retrieved from http://www.smh.com.au/nsw/quality-childcare-comes-with-a-premium- price-tag-20140307-34cro.html
Wilkins, G. and Cruger, C. 2014a. Childcare operators being enticed away from outer growth areas. Retrieved from http://www.smh.com.au/business/childcare-operators-being- enticed-away-from-outer-growth-areas-20140307-34c72.html
Wilkins, G. and Cruger, C. 2014b. Can we arrest the childcare slippery slide? Retrieved from http://www.smh.com.au/business/can-we-arrest-the-childcare-slippery-slide-20140307- 34cty.html