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The Impact Of Childcare Costs On The Full‐Time/Part‐Time Employment Decisions Of Australian Mothers

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  • ANU RAMMOHAN
  • STEPHEN WHELAN

Abstract

Using data from the HILDA (Household Income and Labour Dynamics), this paper examines the implications of childcare costs on maternal employment status by distinguishing between full‐time and part‐time work. Our empirical approach uses an ordered probit model taking into account the endogeneity associated with both wages and childcare costs. Results indicate that childcare costs have a statistically insignificant effect on the decision to work either full time or part time. Moreover, the reported elasticities of part‐time and full‐time work with respect to childcare costs are relatively low. Finally, our results indicate that Australian mothers respond to an increase in wages by increasing both their full‐time and part‐time employment. Conversely, an increase in the number of young children (particularly under four years of age) and an increase in non‐labour income reduce the likelihood of the mother is observed to be working.

Suggested Citation

  • Anu Rammohan & Stephen Whelan, 2007. "The Impact Of Childcare Costs On The Full‐Time/Part‐Time Employment Decisions Of Australian Mothers," Australian Economic Papers, Wiley Blackwell, vol. 46(2), pages 152-169, June.
    • Handle: RePEc:bla:ausecp:v:46:y:2007:i:2:p:152-169
    DOI: 10.1111/j.1467-8454.2007.00311.x
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    References listed on IDEAS

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    1. Rachel Connelly & Jean Kimmel, 2003. "Marital status and full-time/part-time work status in child care choices," Applied Economics, Taylor & Francis Journals, vol. 35(7), pages 761-777.
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    Cited by:

    1. Deborah A. Cobb‐Clark & Lihini De Silva, 2021. "Participation, Unemployment, and Wages," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 54(4), pages 482-493, December.
    2. Joyce P. Jacobsen, 2009. "Accommodating Families," Chapters, in: Kenneth G. Dau-Schmidt & Seth D. Harris & Orly Lobel (ed.), Labor and Employment Law and Economics, chapter 11, Edward Elgar Publishing.
    3. Robert Breunig & Xiaodong Gong & Anthony King, 2012. "Partnered Women's Labour Supply and Child‐Care Costs in Australia: Measurement Error and the Child‐Care Price," The Economic Record, The Economic Society of Australia, vol. 88(s1), pages 51-69, June.
    4. Lorenz, Svenja & Zwick, Thomas, 2021. "Money also is sunny in a retiree’s world: financial incentives and work after retirement," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 55, pages 1-21.
    5. Lixin Cai, 2018. "Dynamic Labour Supply of Married Australian Women," LABOUR, CEIS, vol. 32(3), pages 427-450, September.
    6. Guyonne Kalb & Wang‐Sheng Lee, 2008. "Childcare Use And Parents’ Labour Supply In Australia," Australian Economic Papers, Wiley Blackwell, vol. 47(3), pages 272-295, September.
    7. Chikako Yamauchi, 2010. "The availability of child care centers, perceived search costs and parental life satisfaction," Review of Economics of the Household, Springer, vol. 8(2), pages 231-253, June.
    8. Ross Guest & Nick Parr, 2013. "Family policy and couples’ labour supply: an empirical assessment," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(4), pages 1631-1660, October.
    9. Robert Breunig & Andrew Weiss & Chikako Yamauchi & Xiaodong Gong & Joseph Mercante, 2011. "Child Care Availability, Quality and Affordability: Are Local Problems Related to Labour Supply?," The Economic Record, The Economic Society of Australia, vol. 87(276), pages 109-124, March.

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