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Maternity Leave and the Evidence for Compensating Wage Differentials in Australia

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  • REBECCA EDWARDS

Abstract

Using data from Wave I of the Household, Income and Labour Dynamics in Australia Survey, 2001, in this paper I investigate the value of the maternity leave provisions available to Australian women. The theory of compensating wage differentials informs the model used to estimate the shadow price of eligibility for both paid and unpaid maternity leave benefits. The results suggest a negative wage differential may exist in Australia such that employed women eligible for maternity leave receive a lower rate of pay than those ineligible, all other things being equal. The policy implications of the results are discussed.

Suggested Citation

  • Rebecca Edwards, 2006. "Maternity Leave and the Evidence for Compensating Wage Differentials in Australia," The Economic Record, The Economic Society of Australia, vol. 82(258), pages 281-297, September.
    • Handle: RePEc:bla:ecorec:v:82:y:2006:i:258:p:281-297
    DOI: 10.1111/j.1475-4932.2006.00340.x
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    References listed on IDEAS

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    1. Baird, M, 2003. "Paid maternity leave: The good, the bad, the ugly," Australian Bulletin of Labour, National Institute of Labour Studies, vol. 29(1), pages 97-109.
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    Cited by:

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    3. Barbara Broadway & Guyonne Kalb & Daniel Kuehnle & Miriam Maeder, 2017. "Paid Parental Leave and Child Health in Australia," The Economic Record, The Economic Society of Australia, vol. 93(301), pages 214-237, June.
    4. Barbara Hanel, 2012. "The Impact of Paid Maternity Leave on Labour Market Outcomes," Melbourne Institute Working Paper Series wp2012n19, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    5. Heywood, John S. & Siebert, W. Stanley & Wei, Xiangdong, 2006. "Examining the Determinants of Agency Work: Do Family Friendly Practices Play a Role?," IZA Discussion Papers 2413, Institute of Labor Economics (IZA).
    6. Mark Wooden & Nicole Watson, 2007. "The HILDA Survey and its Contribution to Economic and Social Research (So Far)," The Economic Record, The Economic Society of Australia, vol. 83(261), pages 208-231, June.
    7. Elena Del Rey & Maria Racionero & Jose I. Silva, 2023. "Employer vs Government Parental Leave: Labour Market Effects," ANU Working Papers in Economics and Econometrics 2023-692, Australian National University, College of Business and Economics, School of Economics.
    8. Peter Siminski, 2013. "Are low-skill public sector workers really overpaid? A quasi-differenced panel data analysis," Applied Economics, Taylor & Francis Journals, vol. 45(14), pages 1915-1929, May.
    9. Guyonne Kalb, 2018. "Paid Parental Leave and Female Labour Supply: AÂ Review," The Economic Record, The Economic Society of Australia, vol. 94(304), pages 80-100, March.

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