Date
A.1 Estimates of an alternative specification
The following tables present the results of an alternative model specification where child care of the school-aged children is assumed to be fixed and does not enter the utility function explicitly.
| Variables | ||
|---|---|---|
| y2(A11) | -0.165[-1.41] | |
| l2(A22) | -1.460**[-4.52] | |
| cm2(A33) | 0.278**[3.01] | |
| yl(A12) | -0.027[-0.26] | |
| ycm(A13) | -0.009[-0.10] | |
| lcm(A23) | -0.514**[-5.03] | |
| b1 | 5.074**[6.22] | |
| b's | ||
| b2 | b3 | |
| Constant | -0.895[-0.69] | 2.910[1.53] |
| Age of the mother | 0.346**[2.29] | 0.398**[2.90] |
| The mother speaks a language other than English | -0.938**[-2.72] | -0.001[0.00] |
| The mother is Aboriginal or Torres Strait Islander | -1.371**[-1.34] | 1.355[1.25] |
| The mother was educated in Australia but was not born in Australia | 0.039[0.13] | |
| The mother was educated and born outside of Australia | 0.001[0.00] | |
| Age of the youngest child | 0.399**[5.53] | 0.047[0.25] |
| No. of children aged 0 to 4 | 0.867**[5.16] | 0.346[1.50] |
| No. of children aged 5 to 12 | -0.212**[-2.01] | 0.110[1.28] |
| No. of children aged 13 to 15 | 0.285[1.34] | -0.650**[-2.83] |
| Presence of female adult (besides mother) in household | 0.140[0.31] | 0.456[1.02] |
| Dummy variables for highest level of education received: | ||
| Father received higher education | -0.220[-0.79] | -0.150[-0.66] |
| Father received vocational education | -0.034[-0.13] | 0.028[0.14] |
| Father did not finish year 12 | -0.191[-0.65] | -0.132[-0.53] |
| Father has Year 12 education | ||
| The mother and the father were both educated in Australia but neither was born in Australia | -0.020[-0.14] | |
| The mother and the father were both born and educated outside of Australia | -0.459**[-2.01] | |
| Presence of children older than 12 in household | 0.163[1.38] | |
| Mean age of pre-school children | -0.176[-0.90] | |
| % of child care staff with teaching experience (state average) | -0.038*[-1.95] | |
| % of child care staff with teaching qualification (state average) | -0.009[-0.37] | |
| Variance of the unobserved preference for leisure (σp22) | 0.013[0.05] | 0.159**[3.11] |
| Covariance of unobserved preference for leisure and unobserved heterogeneity in wage (σwp) | 0.037[0.91] | 0.147**[5.98] |
| Fixed benefit equation | ||
| Constant | 1.222**[7.26] | |
| Age of the mother | -0.218**[-5.22] | |
| The mother speaks a language other than English | 0.239**[2.96] | |
| The mother is Aboriginal or Torres Strait Islander | -0.067[-0.38] | |
| The mother was educated in Australia but was not born in Australia | 0.053[0.84] | |
| The mother was educated and born outside of Australia | 0.154*[1.80] | |
| Age of the youngest child | -0.083**[-4.75] | |
| No. of children aged 0 to 4 | 0.014[0.35] | |
| No. of children aged 5 to 12 | 0.108**[3.56] | |
| No. of children aged 13 to 15 | 0.288**[3.67] | |
| Presence of female adult (besides mother) in household | 0.004[0.04] | |
| Dummy variables for highest level of education received: | ||
| Father received higher education | -0.009[-0.13] | |
| Father received vocational education | -0.045[-0.74] | |
| Father did not finish year 12 | 0.079[1.10] | |
| Father has Year 12 education | ||
| Dummy, wave 6 (2006) | 0.027[0.72] | |
| Dummy, wave 7 (2007) | 0.059[1.54] | |
| Likelihood | -3350.86 | |
| Observations | 2,023 | |
t-values
are in the brackets. * Significant at 10 per cent level. ** Significant at 5 per cent level.
| Variables | Mothers of the pre-school children |
|---|---|
| Constant | 1.992**[7.52] |
| Age of the mother | 0.477**[3.02] |
| Age-squared of the mother | -0.049**[-2.08] |
| Dummy variables for highest level of education received: | |
| Mother received higher education | 0.449**[15.01] |
| Mother received vocational education | 0.121**[3.92] |
| Mother did not finish year 12 | -0.089**[-2.51] |
| Mother has Year 12 education | |
| The mother speaks a language other than English | -0.097**[-2.46] |
| The mother is Aboriginal or Torres Strait Islander | -0.014[-0.10] |
| The mother was not with both parents at the age of 14 | -0.027[-1.00] |
| Sydney | |
| Balance of NSW | -0.138**[-3.69] |
| Melbourne | -0.139**[-4.34] |
| Balance of VIC | -0.114**[-2.67] |
| Brisbane | -0.125**[-3.34] |
| Balance of QLD | -0.123**[-3.21] |
| Adelaide | -0.049[-0.91] |
| Balance of SA | -0.256**[-2.91] |
| Perth | -0.172**[-3.50] |
| Balance of WA | -0.207**[-3.45] |
| Tasmania | -0.223**[-2.31] |
| Northern Territory | -0.094[-0.50] |
| ACT | -0.068[-1.30] |
| The mother was educated in Australia but was not born in Australia | -0.039[-1.28] |
| The mother was educated and born outside of Australia | -0.147**[-3.04] |
| Variance of the unobservables in the wage equation (σw2) | 0.151**[63.66] |
t-values are in the brackets. * Significant at 10 per cent level. ** Significant at 5 per cent level.
| With respect to | Labour supply elasticity | Child care demand elasticity | ||
|---|---|---|---|---|
| Hours | employment | Hours of formal care | Use of formal care | |
| Gross child care price | -0.105** (0.03) | -0.069** (0.02) | -0.282** (0.05) | -0.160** (0.03) |
| Net child care price | -0.079** (0.02) | -0.052** (0.01) | -0.221** (0.04) | -0.126** (0.02) |
| Wage | 0.417** (0.09) | 0.268** (0.05) | 0.275** (0.06) | 0.172** (0.04) |
| Household Income (other than mother's earnings) | -0.087 (0.05) | -0.045 (0.04) | -0.038 (0.04) | -0.032 (0.02) |
Standard errors are in the parentheses. ** Significant at 5 per cent level. * Significant at 10 per cent level.
| With respect to | Labour supply elasticity | Child care demand elasticity | ||
|---|---|---|---|---|
| Hours | employment | Hours of formal care | Use of formal care | |
| Gross child care price of pre-school children | ||||
| By mother's education | ||||
| With tertiary education | -0.092** (0.03) | -0.060** (0.01) | -0.272** (0.04) | -0.155** (0.03) |
| Without tertiary education | -0.123**(0.04) | -0.081**(0.02) | -0.297**(0.05) | -0.167**(0.03) |
| By father's education | ||||
| With tertiary education | -0.092** (0.03) | -0.060** (0.01) | -0.272**(0.04) | -0.155**(0.03) |
| Without tertiary education | -0.130** (0.04) | -0.088** (0.02) | -0.315**(0.05) | -0.178**(0.03) |
| By number of children | ||||
| One pre-school child | -0.079** (0.02) | -0.051** (0.01) | -0.216** (0.03) | -0.125** (0.02) |
| Multiple pre-school children | -0.155**(0.05) | -0.102** (0.03) | -0.409** (0.07) | -0.228** (0.04) |
| By mother's wage | ||||
| Above median | -0.081**(0.02) | -0.052**(0.01) | -0.259**(0.04) | -0.146**(0.03) |
| Below median | -0.128**(0.04) | -0.085**(0.02) | -0.305**(0.05) | -0.174**(0.03) |
| By household income (other than mother's earnings) | ||||
| Above median | -0.076**(0.02) | -0.049**(0.01) | -0.225**(0.04) | -0.133**(0.02) |
| Below median | -0.134**(0.04) | -0.089**(0.02) | -0.339**(0.05) | -0.187**(0.03) |
| Net child care price | ||||
| By mother's education | ||||
| With tertiary education | -0.079** (0.02) | -0.048** (0.01) | -0.213** (0.03) | -0.115** (0.02) |
| Without tertiary education | -0.091**(0.03) | -0.056**(0.01) | -0.210**(0.04) | -0.111**(0.02) |
| By father's education | ||||
| With tertiary education | -0.078**(0.02) | -0.047** (0.01) | -0.206**(0.34) | -0.111**(0.02) |
| Without tertiary education | -0.097** (0.03) | -0.061** (0.02) | -0.223**(0.04) | -0.119**(0.02) |
| By number of children | ||||
| One pre-school child | -0.064** (0.02) | -0.039** (0.01) | -0.168** (0.03) | -0.092** (0.02) |
| Multiple pre-school children | -0.121** (0.04) | -0.075** (0.02) | -0.294** (0.05) | -0.154** (0.03) |
| By mother's wage | ||||
| Above median | -0.067**(0.02) | -0.043**(0.01) | -0.218**(0.04) | -0.124**(0.02) |
| Below median | -0.092**(0.03) | -0.061**(0.01) | -0.223**(0.04) | -0.128**(0.02) |
| By household income (other than mother's earnings) | ||||
| Above median | -0.069**(0.02) | -0.044**(0.01) | -0.205**(0.04) | -0.121**(0.02) |
| Below median | -0.090**(0.02) | -0.060**(0.01) | -0.236**(0.04) | -0.131**(0.02) |
| Wage | ||||
| By mother's education | ||||
| With tertiary education | 0.439** (0.09) | 0.280** (0.05) | 0.303** (0.07) | 0.191** (0.04) |
| Without tertiary education | 0.387**(0.08) | 0.250**(0.05) | 0.235**(0.06) | 0.146**(0.03) |
| By father's education | ||||
| With tertiary education | 0.400**(0.08) | 0.252**(0.05) | 0.268** (0.06) | 0.168** (0.03) |
| Without tertiary education | 0.458** (0.10) | 0.303** (0.06) | 0.291**(0.07) | 0.183**(0.04) |
| By number of children | ||||
| One pre-school child | 0.417** (0.08) | 0.265** (0.05) | 0.300** (0.07) | 0.193** (0.04) |
| Multiple pre-school children | 0.418** (0.09) | 0.274** (0.06) | 0.228**(0.05) | 0.134**(0.03) |
| By mother's wage | ||||
| Above median | 0.415**(0.08) | 0.259**(0.05) | 0.286**(0.06) | 0.177**(0.03) |
| Below median | 0.420**(0.09) | 0.277**(0.05) | 0.265**(0.07) | 0.168**(0.04) |
| By household income (other than mother's earnings) | ||||
| Above median | 0.356**(0.07) | 0.227**(0.04) | 0.240**(0.05) | 0.150**(0.03) |
| Below median | 0.479**(0.10) | 0.308**(0.06) | 0.310**(0.07) | 0.195**(0.04) |
| Income | ||||
| By mother's education | ||||
| With tertiary education | -0.113** (0.06) | -0.063** (0.04) | -0.052 (0.04) | -0.041 (0.03) |
| Without tertiary education | -0.051 (0.04) | -0.019(0.03) | -0.019 (0.03) | -0.019(0.02) |
| By father's education | ||||
| With tertiary education | -0.107*(0.06) | -0.060(0.04) | -0.049(0.04) | -0.041(0.03) |
| Without tertiary education | -0.042(0.04) | -0.009(0.03) | -0.014(0.03) | -0.013(0.02) |
| By number of children | ||||
| One pre-school child | -0.089* (0.05) | -0.042 (0.04) | -0.043 (0.04) | -0.033 (0.02) |
| Multiple pre-school children | -0.084* (0.05) | -0.050 (0.04) | -0.028 (0.04) | -0.032 (0.02) |
| By mother's wage | ||||
| Above median | -0.125**(0.06) | -0.071*(0.04) | -0.055(0.04) | -0.044(0.03) |
| Below median | -0.050(0.04) | -0.018(0.03) | -0.021(0.03) | -0.020(0.02) |
| By household income (other than mother's earnings) | ||||
| Above median | -0.159**(0.08) | -0.104**(0.06) | -0.069(0.05) | -0.057(0.04) |
| Below median | -0.015(0.02) | 0.014(0.02) | -0.007(0.02) | -0.007(0.01) |
Standard errors are in the parentheses. ** Significant at 5 per cent level. * Significant at 10 per cent level.
A.2 Estimates using the sub-sample of mothers with pre-school children only
The following tables present the results using the sub-sample of mothers who only have pre-school children and no school-aged children.
| Variables | ||
|---|---|---|
| y2(A11) | -0.278**[-2.40] | |
| l2(A22) | -1.714**[-3.91] | |
| cm2(A33) | 0.069[0.54] | |
| yl(A12) | -0.066[-0.45] | |
| ycm(A13) | -0.120[-1.09] | |
| lcm(A23) | -0.525**[-3.81] | |
| b1 | 6.186**[8.38] | |
| b's | b2 | b3 |
| Constant | -0.761[-0.41] | 4.995**[2.02] |
| Age of the mother | 0.412**[2.03] | 0.283*[1.70] |
| The mother speaks a language other than English | -0.814*[-1.75] | -0.064[-0.20] |
| The mother is Aboriginal or Torres Strait Islander | -0.895[-0.87] | 2.854**[2.43] |
| The mother was educated in Australia but was not born in Australia | 0.113[0.29] | |
| The mother was educated and born outside of Australia | 0.055[0.10] | |
| Age of the youngest child | 0.451**[4.07] | 0.068[0.29] |
| No. of children aged 0 to 4 | 0.837**[3.67] | 0.399[1.47] |
| No. of children aged 5 to 12 | ||
| No. of children aged 13 to 15 | -0.213[-0.57] | -0.314[-0.86] |
| Presence of female adult (besides mother) in household | 0.830[1.16] | 0.724[1.25] |
| Dummy variables for highest level of education received: | ||
| Father received higher education | -0.306[-0.77] | -0.132[-0.53] |
| Father received vocational education | -0.090[-0.26] | -0.128[-0.45] |
| Father did not finish year 12 | -0.011[-0.03] | -0.128[-0.48] |
| Father has Year 12 education | ||
| The mother and the father were both educated in Australia but neither was born in Australia | 0.061[0.32] | |
| The mother and the father were both born and educated outside of Australia | -0.686**[-2.42] | |
| Presence of children older than 12 in household | 0.015[0.10] | |
| Mean age of pre-school children | -0.279[-1.15] | |
| % of child care staff with teaching experience (state average) | -0.042*[-1.64] | |
| % of child care staff with teaching qualification (state average) | -0.007[-0.25] | |
| Variance of the unobserved preference for leisure (σp22) | 0.012[0.06] | 0.118**[2.03] |
| Covariance of unobserved preference for leisure and unobserved heterogeneity in wage (σwp) | 0.041[0.63] | 0.132**[4.05] |
| Fixed benefit equation | ||
| Constant | 1.424**[5.55] | |
| Age of the mother | -0.266**[-4.10] | |
| The mother speaks a language other than English | 0.193[1.46] | |
| The mother is Aboriginal or Torres Strait Islander | -0.477**[-2.20] | |
| The mother was educated in Australia but was not born in Australia | 0.104[1.08] | |
| The mother was educated and born outside of Australia | 0.279**[2.17] | |
| Age of the youngest child | -0.084**[-3.06] | |
| No. of children aged 0 to 4 | 0.021[0.37] | |
| No. of children aged 5 to 12 | ||
| No. of children aged 13 to 15 | 0.404**[2.63] | |
| Presence of female adult (besides mother) in household | -0.242[1.53] | |
| Dummy variables for highest level of education received: | ||
| Father received higher education | 0.025[-0.25] | |
| Father received vocational education | -0.058[-0.65] | |
| Father did not finish year 12 | 0.157[1.42] | |
| Dummy, wave 6 (2006) | 0.030[0.51] | |
| Dummy, wave 7 (2007) | 0.051[0.86] | |
| Likelihood | -1,979.49 | |
| Observations | 1,159 | |
t-values are in the brackets. * Significant at 10 per cent level. ** Significant at 5 per cent level.
| Variables | Mothers of the pre-school children |
|---|---|
| Constant | 2.405**[6.19] |
| Age of the mother | 0.186[0.79] |
| Age-squared of the mother | 0.002[0.06] |
| Dummy variables for highest level of education received: | |
| Mother received higher education | 0.429**[10.67] |
| Mother received vocational education | 0.155**[3.68] |
| Mother did not finish year 12 | -0.088[-1.58] |
| Mother has Year 12 education | |
| The mother speaks a language other than English | -0.093[-1.61] |
| The mother is Aboriginal or Torres Strait Islander | -0.084[-0.46] |
| The mother was not with both parents at the age of 14 | -0.103**[-2.38] |
| Sydney | |
| Balance of NSW | -0.052[-0.98] |
| Melbourne | -0.123**[-2.66] |
| Balance of VIC | -0.059[-0.98] |
| Brisbane | -0.093*[-1.79] |
| Balance of QLD | -0.147**[-2.53] |
| Adelaide | -0.142**[-2.06] |
| Balance of SA | -0.144[-1.21] |
| Perth | -0.198**[-2.58] |
| Balance of WA | -0.361**[-2.88] |
| Tasmania | -0.162[-0.88] |
| Northern Territory | -0.167[-0.76] |
| ACT | -0.151**[-2.11] |
| The mother was educated in Australia but was not born in Australia | 0.023[0.54] |
| The mother was educated and born outside of Australia | -0.009[-0.15] |
| Variance of the unobservables in the wage equation (σw2) | 0.150**[45.85] |
t-values are in the brackets. * Significant at 10 per cent level. ** Significant at 5 per cent level.
| With respect to | Labour supply elasticity | Child care demand elasticity | ||
|---|---|---|---|---|
| Hours | employment | Hours of formal care | Use of formal care | |
| Gross child care price | -0.107** (0.03) | -0.072** (0.02) | -0.284** (0.07) | -0.159** (0.03) |
| Net child care price | -0.081** (0.03) | -0.054** (0.02) | -0.223** (0.03) | -0.126** (0.02) |
| Wage | 0.432** (0.11) | 0.278** (0.07) | 0.304** (0.06) | 0.189** (0.04) |
| Household Income (other than mother's earnings) | -0.029 (0.05) | 0.002 (0.03) | -0.012 (0.04) | 0.001 (0.03) |
Standard errors are in the parentheses. ** Significant at 5 per cent level. * Significant at 10 per cent level.
| With respect to | Labour supply elasticity | Child care demand elasticity | |||
|---|---|---|---|---|---|
| Hours | employment | Hours of formal care | Use of formal care | ||
| Gross child care price of pre-school children | |||||
| By mother's education | |||||
| With tertiary education | -0.094** (0.03) | -0.063** (0.02) | -0.271** (0.06) | -0.152** (0.03) | |
| Without tertiary education | -0.131**(0.04) | -0.088**(0.03) | -0.310**(0.08) | -0.171**(0.04) | |
| By father's education | |||||
| With tertiary education | -0.095**(0.03) | -0.062** (0.02) | -0.271** (0.06) | -0.151** (0.03) | |
| Without tertiary education | -0.135** (0.05) | -0.093** (0.03) | -0.314** (0.07) | -0.177** (0.04) | |
| By number of children | |||||
| One pre-school child | -0.077** (0.02) | -0.052** (0.01) | -0.211**(0.05) | -0.122**(0.02) | |
| Multiple pre-school children | -0.147** (0.05) | -0.097** (0.03) | -0.382**(0.10) | -0.208**(0.04) | |
| By mother's wage | |||||
| Above median | -0.081**(0.03) | -0.053**(0.02) | -0.255**(0.06) | -0.142**(0.03) | |
| Below median | -0.133**(0.04) | -0.090**(0.03) | -0.314**(0.07) | -0.175**(0.04) | |
| By household income (other than mother's earnings) | |||||
| Above median | -0.079**(0.03) | -0.051**(0.02) | -0.223**(0.06) | -0.129**(0.03) | |
| Below median | -0.135**(0.04) | -0.092**(0.03) | -0.345**(0.08) | -0.188**(0.04) | |
| Net child care price | |||||
| By mother's education | |||||
| With tertiary education | -0.076** (0.02) | -0.051** (0.01) | -0.223** (0.06) | -0.126** (0.03) | |
| Without tertiary education | -0.091**(0.03) | -0.061**(0.02) | -0.224**(0.06) | -0.124**(0.03) | |
| By father's education | |||||
| With tertiary education | -0.075** (0.02) | -0.049** (0.01) | -0.221** (0.06) | -0.124** (0.03) | |
| Without tertiary education | -0.095** (0.03) | -0.066** (0.02) | -0.228** (0.06) | -0.130** (0.03) | |
| By number of children | |||||
| One pre-school child | -0.060** (0.02) | -0.040** (0.01) | -0.167**(0.02) | -0.097**(0.01) | |
| Multiple pre-school children | -0.110**(0.04) | -0.073** (0.02) | -0.299**(0.09) | -0.164**(0.04) | |
| By mother's wage | |||||
| Above median | -0.068**(0.02) | -0.045**(0.01) | -0.216**(0.06) | -0.121**(0.03) | |
| Below median | -0.095**(0.03) | -0.064**(0.02) | -0.231**(0.06) | -0.130**(0.03) | |
| By household income (other than mother's earnings) | |||||
| Above median | -0.071**(0.02) | -0.046**(0.01) | -0.203**(0.06) | -0.117**(0.03) | |
| Below median | -0.092**(0.03) | -0.063**(0.02) | -0.244**(0.06) | -0.134**(0.03) | |
| Wage | |||||
| By mother's education | |||||
| With tertiary education | 0.437** (0.11) | 0.281** (0.07) | 0.322** (0.07) | 0.207** (0.04) | |
| Without tertiary education | 0.421**(0.11) | 0.274**(0.07) | 0.270**(0.06) | 0.167**(0.03) | |
| By father's education | |||||
| With tertiary education | 0.401** (0.09) | 0.253** (0.06) | 0.293**(0.06) | 0.128**(0.04) | |
| Without tertiary education | 0.502** (0.13) | 0.336** (0.09) | 0.330** (0.07) | 0.207** (0.04) | |
| By number of children | |||||
| One pre-school child | 0.440** (0.10) | 0.285** (0.07) | 0.342**(0.07) | 0.223**(0.04) | |
| Multiple pre-school children | 0.420**(0.11) | 0.269**(0.08) | 0.253** (0.05) | 0.144** (0.03) | |
| Above median | 0.412**(0.10) | 0.258**(0.07) | 0.308**(0.06) | 0.189**(0.04) | |
| Below median | 0.451**(0.11) | 0.298**(0.08) | 0.300**(0.07) | 0.189**(0.04) | |
| By household income (other than mother's earnings) | |||||
| Above median | 0.352**(0.09) | 0.221**(0.06) | 0.255**(0.05) | 0.158**(0.03) | |
| Below median | 0.511**(0.13) | 0.336**(0.09) | 0.353**(0.08) | 0.221**( 0.04) |
|
| Income | |||||
| By mother's education | |||||
| With tertiary education | -0.051 (0.05) | -0.014 (0.04) | 0.002 (0.04) | -0.005 (0.03) | |
| Without tertiary education | 0.013 (0.04) | 0.034(0.03) | 0.031 (0.04) | 0.012(0.03) | |
| By father's education | |||||
| With tertiary education | -0.055 (0.06) | -0.021 (0.04) | -0.003 (0.04) | -0.011 (0.03) | |
| Without tertiary education | 0.032(0.03) | 0.055 (0.03) | 0.045 (0.03) | -0.028 (0.02) | |
| By number of children | |||||
| One pre-school child | -0.043(0.05) | -0.003(0.04) | 0.000(0.04) | -0.003(0.03) | |
| Multiple pre-school children | -0.010(0.04) | 0.010(0.03) | 0.028(0.04) | 0.006(0.02) | |
| By mother's wage | |||||
| Above median | -0.075(0.06) | -0.036(0.04) | -0.013(0.04) | -0.017(0.03) | |
| Below median | 0.017(0.04) | 0.040(0.03) | 0.037(0.036) | 0.018(0.03) | |
| By household income (other than mother's earnings) | |||||
| Above median | -0.069(0.07) | -0.040(0.05) | 0.003(0.05) | -0.010(0.04) | |
| Below median | 0.012(0.03) | 0.045**(0.02) | 0.021(0.03) | 0.012(0.02) | |
Standard errors are in the parentheses. ** Significant at 5 per cent level. * Significant at 10 per cent level.