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Child Care Costs and the Employment Status of Married Australian Mothers

Anu Rammohan and Stephen Whelan (stephen.whelan@sydney.edu.au)

No 517, CEPR Discussion Papers from Centre for Economic Policy Research, Research School of Economics, Australian National University

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.

Keywords: female labour supply; child care; part-time; full-time (search for similar items in EconPapers)
JEL-codes: D13 J12 J13 J16 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2006-04
New Economics Papers: this item is included in nep-dcm and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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