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Labour Force Participation of Mature Age Men in Australia: The Role of Spousal Participation

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Author Info

  • Mavromaras, Kostas G.

    ()
    (NILS, Flinders University)

  • Zhu, Rong

    ()
    (NILS, Flinders University)

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    Abstract

    In this paper we estimate the interdependence of labour force participation decisions made by Australian couples from 2001 to 2011. We focus on couples with a mature age husband, and estimate the interdependence of the participation decision of the couple. We find that the decision of a wife to work or not influences positively, and in a causal fashion, the decision of her husband to work or not. In our paper we use counterfactual analysis to estimate the impact of the increasing labour force participation of a wife on her husband's participation. We find that the increased labour force participation of married women observed between 2002 and 2011 has been responsible for about a 4 percentage points increase in the participation of their mature age husbands.

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    Bibliographic Info

    Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7581.

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    Length: 28 pages
    Date of creation: Aug 2013
    Date of revision:
    Handle: RePEc:iza:izadps:dp7581

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    Related research

    Keywords: labour force participation; spousal status; joint decision making; male employment trends; Australia;

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    1. Coile Courtney, 2004. "Retirement Incentives and Couples' Retirement Decisions," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 4(1), pages 1-30, July.
    2. John DiNardo & Nicole M. Fortin & Thomas Lemieux, 1995. "Labor Market Institutions and the Distribution of Wages, 1973-1992: A Semiparametric Approach," NBER Working Papers 5093, National Bureau of Economic Research, Inc.
    3. Doreen Wing Han Au & Thomas F. Crossley & Martin Schellhorn, 2005. "The effect of health changes and long-term health on the work activity of older Canadians," Health Economics, John Wiley & Sons, Ltd., vol. 14(10), pages 999-1018.
    4. Neumark, David & Postlewaite, Andrew, 1998. "Relative income concerns and the rise in married women's employment," Journal of Public Economics, Elsevier, vol. 70(1), pages 157-183, October.
    5. Dwyer, Debra Sabatini & Mitchell, Olivia S., 1999. "Health problems as determinants of retirement: Are self-rated measures endogenous?," Journal of Health Economics, Elsevier, vol. 18(2), pages 173-193, April.
    6. Daniela Del Boca & Marilena Locatelli & Silvia Pasqua, 2000. "Employment Decisions of Married Women: Evidence and Explanations," LABOUR, CEIS, vol. 14(1), pages 35-52, 03.
    7. Gustman, Alan L & Steinmeier, Thomas L, 2000. "Retirement in Dual-Career Families: A Structural Model," Journal of Labor Economics, University of Chicago Press, vol. 18(3), pages 503-45, July.
    8. Hielke Buddelmeyer & Wang-Sheng Lee & Mark Wooden, 2009. "Low-Paid Employment and Unemployment Dynamics in Australia," Melbourne Institute Working Paper Series wp2009n06, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    9. Morrill, Melinda Sandler & Morrill, Thayer, 2013. "Intergenerational links in female labor force participation," Labour Economics, Elsevier, vol. 20(C), pages 38-47.
    10. Tammy Schirle, 2008. "Why Have the Labor Force Participation Rates of Older Men Increased since the Mid-1990s?," Journal of Labor Economics, University of Chicago Press, vol. 26(4), pages 549-594, October.
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