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- Title
Foregone earnings from child rearing.
- Authors
Gray, Matthew; Chapman, Bruce
- Abstract
The article discusses the relationship between child rearing and lifetime earnings of Australian women. There are a number of costs to parents of raising children. These costs can be divided into two types, direct and indirect. Direct costs are the additional costs that a household has because of the presence of children. Indirect costs, on the other hand, refer to the loss of income that a household experiences because one or both parents spends time out of paid employment or takes a lower paying job in order to look after the children. Using data on Australian women from 1986, the authors inferred that earnings differences between women according to the number of children they have were the result of choices made with respect to time allocation. That is, if a woman chose to spend time in child rearing activities this was seen to have a market opportunity cost earnings were foregone as a result of these activities. The study followed the methodology of comparing the earnings of women in regression analyses, controlling for a host of human capital, demographic and fertility characteristics. INSET: MODELLING LABOUR FORCE PARTICIPATION AND EARNINGS.
- Subjects
CHILD rearing; MOTHER-child relationship; WOMEN'S employment; OPPORTUNITY costs; REGRESSION analysis; AUSTRALIANS
- Publication
Family Matters, 2001, Issue 58, p4
- ISSN
1030-2646
- Publication type
Article