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Longitudinal Study: HILDA
Title: Child care costs and the employment status of married Australian mothers
Authors: Whelan, S 
Rammohan, A 
Institution: Centre for Economic Policy Research, the Australian National University
Publication Date: Apr-2006
Pages: 27
Keywords: female labour supply
child care
Abstract: Using data from the HILDA (Household Income and Labour Dynamics), this paper examines the implications of child care costs on maternal employment status by distinguishing between full-time and part-time work. Our empirical approach uses an ordered probit model taking into account the endogeneity associated with both wages and child care costs. Results indicate that child care costs have a statistically insignificant effect on the decision to work either full time or part time. Moreover, the reported elasticities of part-time and full-time work with respect to child care costs are relatively low. This suggests that the significant subsidies paid to users of child care may have a limited role in increasing the labour market activity of married mothers.
ISBN: ISSN: 1442-8636 ISBN: 0 7315 3587 1
Research collection: Reports and technical papers
Appears in Collections:Reports

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