New Estimates of Mothers’ Forgone Earnings Using HILDA Data
AbstractWomen who have children miss out on potential earnings. This happens through a combination of time out of the labour force, reduced working hours and lower paying jobs. We examine mothers' forgone earnings using HILDA 2001 data and find substantial effects, which vary with the woman's education and number of children. At a middle level of education (completed year 12 only), women forgo around 31 per cent of lifetime potential income for a first child, an additional 13 per cent for a second child, and a further 9 per cent for a third child. More highly educated women lose less proportionally than the less educated, although their dollar amounts of forgone earnings are higher. There is evidence, in comparison with previous studies, that the proportions forgone are falling with time, but more clearly so for women with higher education. We also find that women who delay motherhood maintain slightly more earnings than early childbearers.
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Bibliographic InfoArticle provided by Bankwest Curtin Economics Centre (BCEC), Curtin Business School in its journal Australian Journal of Labour Economics.
Volume (Year): 7 (2004)
Issue (Month): 2 (June)
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Postal: GPO Box U1987, Perth WA 6845
Web page: http://business.curtin.edu.au/research/publications/journals/ajle/
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Marriage; Marital Dissolution; Family Structure Time Allocation and Labour supply Value of Life; Foregone Income;
Find related papers by JEL classification:
- J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
- J17 - Labor and Demographic Economics - - Demographic Economics - - - Value of Life; Foregone Income
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- Peng Yu, 2006. "Higher Education, the Bane of Fertility? An investigation with the HILDA Survey," CEPR Discussion Papers 512, Centre for Economic Policy Research, Research School of Economics, Australian National University.
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