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Demands for Childcare and Household Labour Supply in Australia

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  • Denise Doiron

    () (School of Economics, The University of New South Wales)

  • Guyonne Kalb

    () (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

Abstract

Demands for formal and informal childcare are estimated using a bivariate Tobit model. Predicted costs of childcare are incorporated in the households’ budget constraints and a discrete choice labour supply model is estimated. Separate models are estimated for couples and lone parents. Increases in the prices and costs of childcare lead to reductions in labour supply for lone parents and partnered mothers. Results suggest the average elasticities in Australia are closer to those found in the U.K. and are smaller than the estimates for Canada and the U.S. Effects are stronger for single parents and mothers facing low wages.

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Bibliographic Info

Paper provided by Melbourne Institute of Applied Economic and Social Research, The University of Melbourne in its series Melbourne Institute Working Paper Series with number wp2004n06.

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Length: 40 pages
Date of creation: Apr 2004
Date of revision:
Handle: RePEc:iae:iaewps:wp2004n06

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References

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  1. Charles Michalopoulos & Philip K. Robins, 2000. "Employment and child-care choices in Canada and the United States," Canadian Journal of Economics, Canadian Economics Association, vol. 33(2), pages 435-470, May.
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  9. Ribar, D.C., 1991. "A Structural Model of Child Care and the Labor Supply of Married Women," Papers 1-91-1, Pennsylvania State - Department of Economics.
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  15. repec:rus:hseeco:9882 is not listed on IDEAS
  16. Jean Kimmel, 1998. "Child Care Costs As A Barrier To Employment For Single And Married Mothers," The Review of Economics and Statistics, MIT Press, vol. 80(2), pages 287-299, May.
  17. Alan Duncan & Gillian Paull & Jayne Taylor, 2001. "Price and quality in the UK childcare market," IFS Working Papers W01/14, Institute for Fiscal Studies.
  18. Guyonne Kalb, 2002. "Estimation of Labour Supply Models for Four Separate Groups in the Australian Population," Melbourne Institute Working Paper Series wp2002n24, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
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Citations

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Cited by:
  1. Breunig, Robert & Cobb-Clark, Deborah A. & Gong, Xiaodong, 2005. "Improving the Modeling of Couples' Labour Supply," IZA Discussion Papers 1773, Institute for the Study of Labor (IZA).
  2. 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.
  3. Edwin van Gameren, 2010. "The role of economic incentives and attitudes in participation and childcare decisions," Serie documentos de trabajo del Centro de Estudios Económicos 2010-05, El Colegio de México, Centro de Estudios Económicos.
  4. Herwig Immervoll & David Barber, 2005. "Can Parents Afford to Work?: Childcare Costs, Tax-Benefit Policies and Work Incentives," OECD Social, Employment and Migration Working Papers 31, OECD Publishing.
  5. 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, 09.
  6. 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, 06.
  7. Guyonne Kalb & Thor Thoresen, 2010. "A comparison of family policy designs of Australia and Norway using microsimulation models," Review of Economics of the Household, Springer, vol. 8(2), pages 255-287, June.
  8. Yin King Fok & Sung-Hee Jeon & Roger Wilkins, 2009. "Does Part-Time Employment Help or Hinder Lone Mothers Movements into Full-Time Employment?," Melbourne Institute Working Paper Series wp2009n25, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  9. Chikako Yamauchi, 2009. "The Availability of Child Care Centers, Perceived Search Costs and Parental Life Satisfaction," CEPR Discussion Papers 620, Centre for Economic Policy Research, Research School of Economics, Australian National University.
  10. Beate Grundig, 2008. "Why is the share of women willing to work in East Germany larger than in West Germany? A logit model of extensive labour supply decision," Ifo Working Paper Series Ifo Working Paper No. 56, Ifo Institute for Economic Research at the University of Munich.
  11. Edwin van Gameren & Ingrid Ooms, 2009. "Childcare and labor force participation in the Netherlands: the importance of attitudes and opinions," Review of Economics of the Household, Springer, vol. 7(4), pages 395-421, December.
  12. Guyonne Kalb, 2009. "Children, Labour Supply and Child Care: Challenges for Empirical Analysis," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 42(3), pages 276-299.
  13. Patricia Apps & Jan Kabátek & Ray Rees & Arthur van Soest, 2012. "Labor Supply Heterogeneity and Demand for Child Care of Mothers with Young Children," CEPR Discussion Papers 677, Centre for Economic Policy Research, Research School of Economics, Australian National University.
  14. Cristina Borra Marcos, 2006. "Female labour participation and child care choices in Spain," Economic Working Papers at Centro de Estudios Andaluces E2006/16, Centro de Estudios Andaluces.
  15. Apps, Patricia & Kabatek, Jan & Rees, Ray & van Soest, Arthur, 2012. "Labor Supply Heterogeneity and Demand for Child Care of Mothers with Young Children," IZA Discussion Papers 7007, Institute for the Study of Labor (IZA).

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