The impact of childcare costs on the full-time/part-time employment decisions of Australian mothers

Anu Rammohan, S. Whelan

Research output: Contribution to journalArticle

Abstract

Using data from the HILDA (Household Income and Labour Dynamics), this paper examines the implications of childcare 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 childcare costs. Results indicate that childcare 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 childcare costs are relatively low. Finally, our results indicate that Australian mothers respond to an increase in wages by increasing both their full-time and part-time employment. Conversely, an increase in the number of young children (particularly under four years of age) and an increase in non-labour income reduce the likelihood of the mother is observed to be working.
Original languageEnglish
Pages (from-to)152-169
JournalAustralian Economic Papers
Volume46
Issue number2
DOIs
Publication statusPublished - 2007

Fingerprint Dive into the research topics of 'The impact of childcare costs on the full-time/part-time employment decisions of Australian mothers'. Together they form a unique fingerprint.

  • Cite this