Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/207326 
Year of Publication: 
2019
Series/Report no.: 
IZA Discussion Papers No. 12500
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We develop and estimate a structural model of labour supply for two parent families in Australia, taking explicit account of the importance of childcare related variables. Our main contribution is to consider the labour supply decisions of both parents and their choice of childcare simultaneously. Labour supply decisions of mothers are found to be substantially more responsive to changes in their own wage (at intensive and extensive margins) than is the case for fathers, with minimal cross-wage labour supply responses from fathers. Our results imply that policies increasing the wage of mothers will be associated with marked increases in labour market participation and in the working hours of mothers in the Australian labour market, with little offsetting decline in the labour supply of fathers.
Subjects: 
childcare
parental labour supply
discrete
unitary
JEL: 
J00
J13
J22
Document Type: 
Working Paper

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