Newborns require significant time, often leading mothers to drastically reduce work hours. Can giving mothers more control over their work schedules mitigate this drop in labor supply and earnings (known as the “child penalty”)? And do fathers step up with childcare and housework when mothers work more?
A new IZA Discussion Paper by Ludovica Ciasullo and Martina Uccioli explores these questions. They analyze the impact of Australia’s 2009 Fair Work Act, which granted parents the right to request a change in work arrangements. Their findings? Specific work arrangements with greater control over work hours do reduce the child penalty for mothers. However, fathers did not contribute more to housework when mothers worked more.
Regular schedules more appealing than casual contracts
Before 2009, many Australian mothers opted for casual contracts (no guaranteed hours) to reduce work hours. The Fair Work Act allowed them to request reduced hours within their existing permanent contracts, maintaining a predictable schedule. This predictability was highly sought after: 70% fewer women transitioned from permanent to casual contracts after childbirth compared to before the legislation.
More hours worked, same time spent with children
The option to maintain permanent contracts led to increased work hours for mothers. In the most exposed group, the option to request this work arrangement led to an increase in labor supply by eight hours per week. This increase in work hours came at the expense of housework, but not of childcare: affected mothers spent similar amounts of time with their newborns compared to similar mothers before the legislation. This suggests mothers weren’t neglecting their children for work.
Earnings up, housework share unchanged
The law significantly impacted mothers’ labor supply and earnings. Mothers in the most exposed group increased their share of household income by eight percentage points. Yet, their relative contribution to housework and childcare remained unchanged. This suggests that relative earnings aren’t the only factor in how tasks are split within couples, highlighting the potential role of gender norms.