This article examines the possible consequences of rising divorce risks for the pattern of married women's labour supply in the Australian labour market. An extension of Becker's (1965) model of time allocation is used to inform an empirical analysis of this issue based on the 1997 Negotiating the Life Course Survey data. The empirical analysis in the article features a model that controls for the possibility of an endogenous relationship between women's involvement in paid work and the risk of divorce. Results show a significant positive relationship between the risk of divorce and the probability that a woman will be involved in full-time work. Copyright 2004 The University of Melbourne, Melbourne Institute of Applied Economic and Social Research.
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Article provided by The University of Melbourne, Melbourne Institute of Applied Economic and Social Research in its journal The Australian Economic Review.
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