Family migration and labour market outcomes of partnered women

Abstract

This paper uses data from the first nine waves of the HILDA Survey to study the effects of family relocation within Australia on married women's labour market outcomes. It uses matched couple data for men and women who were partnered before and after relocation, and compares labour force participation and earnings in couples who recently moved long-distance to those of the couples who have not moved or moved only a short distance. The descriptive analysis shows that married men and women in the mover and nonmover families have similar employment rates and earnings before relocation, however in the year following relocation the employment and earnings of women in the migrant families are significantly lower than those of non-migrant wives, while the earnings and employment rates of the husbands do not differ substantially. At the same time, wives in the relocating families report no significant changes in satisfaction with employment opportunities post-relocation, whereas the husbands' satisfaction with their employment opportunities significantly increases for those who have recently moved compared to non-movers.

The two-stage regression models are then estimated to analyse the determinants of long distance migration in couples, as well as the effects of migration on labour market outcomes, accounting for self-selection. The husband's education and employment are found to be stronger predictors of long-distance migration than the characteristics of the wife; however, families where the wife is more highly educated are found to be more likely to move. Finally, the estimation results of employment and earnings models are consistent with the findings of descriptive analysis, confirming that migrant wives have much lower employment rates and earnings compared to non-migrant married women, unlike the married men for whom the adverse effects of migration are minimal in comparison.