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The Impact of Fertility on Mothers' Labour Supply in Australia: Evidence from Exogenous Variation in Family Size

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  • Julie Moschion

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

Abstract

This 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.

Suggested Citation

  • Julie Moschion, 2011. "The Impact of Fertility on Mothers' Labour Supply in Australia: Evidence from Exogenous Variation in Family Size," Melbourne Institute Working Paper Series wp2011n17, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  • Handle: RePEc:iae:iaewps:wp2011n17
    as

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    File URL: http://melbourneinstitute.unimelb.edu.au/downloads/working_paper_series/wp2011n17.pdf
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    References listed on IDEAS

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    Cited by:

    1. repec:bla:ecorec:v:94:y:2018:i:307:p:405-423 is not listed on IDEAS
    2. Tomoko Kishi, 2014. "Female Labour Supply in Australia and Japan: The Effects of Education and Qualifications," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 17(3), pages 233-255.

    More about this item

    Keywords

    Fertility; labour market participation; Australia; family policies;

    JEL classification:

    • 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

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