TY - RPRT AU - Mumford, Karen A. AU - Parera-Nicolau, Antonia AU - Pena-Boquete, Yolanda TI - Labour Supply and Childcare: Allowing Both Parents to Choose PY - 2019/Jul/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 12500 UR - https://www.iza.org/publications/dp12500 AB - 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. KW - childcare KW - parental labour supply KW - discrete KW - unitary ER -