Fig. 5 shows a mother who is participating in the labour force when the subsidy is enacted. Prior to the subsidy, her utility was maximised at point X’ on indifference curve U’1, a point at H’1 hours are worked. When the subsidy generates the constraint abe, her utility will now be maximised at point Y’ (on U’2 and she will reduce her hours of work to H’2). For females already working, removing the fixed cost of childcare has an income effect that encourages them toward taking less hours of work. This could have a disincentivising effect on working mothers to remain in the labour force, however in Fig.5 the individual remains in the labour market