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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. Copyright 2007 The Authors Journal compilation 2007 Blackwell Publishing Ltd/University of Adelaide and Flinders University .

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Australian Economic Papers.

Volume (Year): 46 (2007)
Issue (Month): 2 (06)
Pages: 152-169

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Handle: RePEc:bla:ausecp:v:46:y:2007:i:2:p:152-169

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0004-900X

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Cited by:
  1. Chikako Yamauchi, 2010. "The availability of child care centers, perceived search costs and parental life satisfaction," Review of Economics of the Household, Springer, Springer, vol. 8(2), pages 231-253, June.
  2. Joyce P. Jacobsen, 2008. "Accommodating Families," Wesleyan Economics Working Papers 2008-004, Wesleyan University, Department of Economics.
  3. Xiaodong Gong & Robert Breuing & Anthony King, 2011. "Partnered women’s labour supply and child care costs in Australia: measurement error and the child care price," CEPR Discussion Papers 652, Centre for Economic Policy Research, Research School of Economics, Australian National University.
  4. Ross Guest & Nick Parr, 2013. "Family policy and couples’ labour supply: an empirical assessment," Journal of Population Economics, Springer, Springer, vol. 26(4), pages 1631-1660, October.

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