The Impact of Fertility on Mothers' Labour Supply in Australia: Evidence from Exogenous Variation in Family Size
AbstractThis paper estimates the impact of fertility on mothers’ labour supply in Australia, using exogenous variation in family size generated by twin births and the gender mix of siblings. Results show that having more than one child decreases labour market participation by 15.5 percentage points and hours worked by around 6 hours per week. Having more than two children reduces labour market participation by between 12 and 20 percentage points and hours worked by between 3 and 8 hours a week, depending on the instrument used. Interestingly, fathers also reduce both their labour market participation (by 10 percentage points) and their number of hours worked per week (by 4 hours) when having more than one child. Compared with the results obtained with the same methodology for other countries, the effects for Australia are large, which partly reflects the constraints on public childcare and the lack of a national paid parental leave scheme prior to 2011.
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Bibliographic InfoPaper provided by Melbourne Institute of Applied Economic and Social Research, The University of Melbourne in its series Melbourne Institute Working Paper Series with number wp2011n17.
Length: 50 pages
Date of creation: Jun 2011
Date of revision:
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Postal: Melbourne Institute of Applied Economic and Social Research, The University of Melbourne, Victoria 3010 Australia
Phone: +61 3 8344 2100
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Web page: http://www.melbourneinstitute.com/
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Fertility; labour market participation; Australia; family policies;
Other versions of this item:
- Julie Moschion, 2013. "The Impact of Fertility on Mothers' Labour Supply in Australia: Evidence from Exogenous Variation in Family Size," The Economic Record, The Economic Society of Australia, The Economic Society of Australia, vol. 89(286), pages 319-338, 09.
- J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-08-09 (All new papers)
- NEP-DEM-2011-08-09 (Demographic Economics)
- NEP-LAB-2011-08-09 (Labour Economics)
- NEP-LMA-2011-08-09 (Labor Markets - Supply, Demand, & Wages)
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