Labour supply estimates for married women in Australia

This analysis uses a sample selection model to estimate the hours of work decision for married women in Australia using unit record data for 1995 and 1996. Hours of work are found to be positively related to the after tax wage rate and negatively related to unearned income (which includes social security benefits). Other characteristics of married women are also found to have an effect on the labour supply decision. Wage elasticities are calculated from the results of the labour supply estimation. These show considerable heterogeneity in married women's responsiveness to the wage rate between different demographic types.