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Title page

Contents

Abstract 3

1. Introduction 4

2. Data: The HILDA Survey 8

3. Institutional Setting: Casual Jobs and the Fair Work Act 10

3.1. Before 2009: Less-Than-Full-Time Jobs Were Mostly Casual 10

3.2. The Shift: The Fair Work Act Facilitates Shorter Hours in Permanent Contracts 12

3.3. First Stage: Quantitative Evidence of the Effect of the Law on Work Arrangements 14

4. The Status Quo: Child Penalties Before The Fair Work Act 18

4.1. Measuring the Child Penalty 18

4.2. Evidence on the Child Penalty Before the Fair Work Act 18

5. The Impact of Work Arrangements on the Child Penalty and on the Intra-household Allocation of Time 20

5.1. Strategy 1: Early versus Late Cohorts 20

5.2. Strategy 2: Exposure by Occupation and Industry 25

6. Conclusion 31

Disclaimers 33

References 34

Appendix 52

A. Variables' Construction 52

B. Characteristics of Casual Contracts and Qualitative Evidence on the Effect of the Fair Work Act 55

C. Threats to the Identification of the Direct Effect of the Fair Work Act on Work Arrangements 60

D. No Effects of the Fair Work Act on Fathers' Work Arrangements 70

E. Threats to Identification in the Early versus Late Cohort Design 71

F. Paid Parental Leave 77

G. Further Details on the Exposure Design 80

H. Threats to Identification in The Occupational Exposure Strategy 83

Tables

Table 1. Descriptive Statistics 47

Table 2. Changes in Work Arrangements for Mothers 48

Table 3. Child Penalty for Early and Late Cohorts of Mothers 49

Table 4. Changes in Child Penalty by Exposure to the Fair Work Act - Women 50

Table 5. Changes in Child Penalty by Exposure to the Fair Work Act - Men and Couples 51

Figures

Figure 1. Child Penalties in Raw Data: Labor Earnings and Time Use around Birth of First Child 38

Figure 2. Reduced-hours Permanent Contract for Mothers Relative to Non-Mothers, by Year and Age of Child 39

Figure 3. Child Penalties Before the Fair Work Act 40

Figure 4. Change in the Child Penalty for Women: Early versus Late Cohorts (Pre- versus Post-Fair Work Act) 41

Figure 5. Time Evolution of the Child Penalty for Women 42

Figure 6. Exposure to the Fair Work Act: Occupations and Industries by Terciles of Casual Prevalence 43

Figure 7. Contract Type and Time Use of Women around Childbirth, Before and After Reform, by Exposure to the Fair Work Act 44

Figure 8. Time Use of Men around Childbirth, Before and After Reform, by their Partner's Exposure to the Fair Work Act 45

Figure 9. Female Share of Household Income, Working Time, and Home Production around Childbirth, Before and After Reform, by Exposure to the Fair Work Act 46

Appendix Tables

Table B.1. Probability of Having a Regular Schedule by Type of Contract 56

Table B.2. Comparing Pre-2009 Awards to Modern Awards 58

Table C.1. Balance Table: Early versus Late Cohorts of Mothers-to-be 62

Table C.2. Balance Table: Occupation and Industry of Early versus Late Cohorts of Mothers 63

Table C.3. Robustness of Effect of Fair Work Act on Work Arrangements to Accounting For The Financial Crisis: Permanent Reduced Hours (Unconditional) 65

Table C.4. Robustness of Effect of Fair Work Act on Work Arrangements to Accounting For The Financial Crisis: Permanent Reduced Hours (Conditional on Working) 66

Table C.5. Robustness of Effect of Fair Work Act on Work Arrangements to Accounting For The Financial Crisis: Permanent Below 35 hours (Unconditional) 67

Table C.6. No Backlash in Hiring 69

Table D.1. Changes in Work Arrangements for Fathers 70

Table E.1. Robustness of Early versus Late Cohort Comparison to Partner's Labor Supply and Income (Added-Worker Effect): Permanent Contract 72

Table E.2. Robustness of Early versus Late Cohort Comparison to Partner's Labor Supply and Income (Added-Worker Effect): Weekly Hours of Work Conditional... 73

Table E.3. Robustness of Early versus Late Cohort Comparison to Partner's Labor Supply and Income (Added-Worker Effect): Labor Force Participation 74

Table F.1. Changes in Child Penalty by Exposure to the Fair Work Act - Paid Parental Leave Subsample 79

Table G.1. Job Characteristics by Tercile 82

Table H.1. Early and Late Cohorts are Similar on Pre-Birth Observables in All Terciles 87

Table H.2. Robustness to Only Using Jobs Chosen Before Fair Work Act 89

Appendix Figures

Figure B.1. Correlation between Casual Contract and (Ir)regular Schedule 55

Figure B.2. Gap Between Actual and Desired Working Hours 56

Figure B.3. Type of Contracts among Mothers Working Less Than Full-Time, Before and After the Fair Work Act 59

Figure B.4. Number of Hours Worked by Mothers in Permanent Jobs, Before and After the Fair Work Act 59

Figure C.1. Fertility Did Not Change Discontinuously Around 2009 61

Figure E.1. No Variation in Unpaid Leave Take-Up 77

Figure G.1. Distribution of Casual Prevalence 80

Figure H.1. Time Evolution of Child Penalty by Exposure to Fair Work Act 85

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