Child care costs and the employment status of married Australian mothers

Child care Statistics Industry assistance Job creation Australia

Anu Rammohan and Stephen Whelan examine the implications of child care costs for maternal employment status by distinguishing between full-time and part-time work. Their 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.

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