The influence of income and work hours on first birth for Australian women

Abstract

Multigenerational disadvantage is related to patterns of family formation because divergent childbearing pathways widen socioeconomic differences in children’s resources. Socioeconomic differences in the timing of first family formation (age at first birth) in Australia have been found using educational attainment as a proxy for socioeconomic status. International evidence suggests that income may be a more direct measure, however its use is confounded by its relationship with work hours. Using Australian prospective panel data, and discrete-time hazard models with time-varying effects, this paper explores how income and work hours influence first birth timing for Australian women. The results indicate that higher gross weekly wages reduce the risk of first birth at younger ages and increase the risk at older ages. The hourly wage and work hours components of gross weekly wages are then separated, and the independent effects on first birth timing are analysed. There is a clearer effect of higher wages, while working part-time is significantly associated with a higher risk of first birth at any age. The results suggest that while some employment facilitates childbearing, there are socioeconomic differences in the timing of first family formation for Australian women and that accounting for work hours may be important when examining the effect of income.