NATSEM Seminar Series

The Australian Commonwealth's Labour Supply Microsimulation Model CAPITA-B

Tue 28 February 2017Joseph Mercante and Wei Ying Soh / 11am-12pmSeminar Room 2, Building 24, University of Canberra

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About the Talk

The Australian Department of Employment has recently developed a labour supply model called CAPITA-B. The model is based on the new CAPITA tax and transfer microsimulation model, which was recently developed by the Department of Treasury in collaboration with the Department of Employment and the Department of Social Services.

The CAPITA-B model is used to study the impact of tax and transfer policies on the labour supply behaviour of households and will help to inform policies that are aimed at increasing workforce participation.

This presentation introduces the model’s architecture and theoretical basis. We discuss some of the tests that were done to benchmark and validate the results of the model and present simulation results of a hypothetical tax and transfer policy reform.

The model is now being further developed so that it can analyse the impact of child care policies on labour supply. This process also involves enhancing the CAPITA model to be able to model child care policy for families represented in the basefiles of the model. We discuss some of the approaches that we considered and demonstrate the performance of our chosen approach.


About the Speakers

Joseph Mercante is a senior modeller in the Economics Branch of the Australian Department of Employment. Joseph has previously worked at the New Zealand and Australian Treasuries. He has degrees in Political Science and Economics.

Wei Ying Soh is a modeller in the Economics Branch of the Australian Department of Employment and previously worked at the Department of Immigration and Border Protection. He has a Bachelor of Commerce (Honours) degree from the University of Melbourne.

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