Dynamic Labour Supply of Married Australian Women

Using the first 13 waves of the Household, Income and Labour Dynamics in Australia Survey, this study investigates the determinants of labour supply of married Australian women, with a focus on whether and to what extent there is state dependence in their labour supply. It is found that both observed and unobserved individual heterogeneity contribute to the observed inter-temporal persistence of married Australian women's labour supply, but the persistence remains even after controlling for these factors. It is also found that non-labour income, age, education, health and the number and age of young dependent children have significant effects on married Australian women's labour supply.