Health selection, family division of labour and labour market participation of migrant and Australian born couples

Abstract

Australia is a multi-cultural society, with the majority of recent migrants arriving from non-English speaking Asian countries. Yet we know little about how ethnic diversity in the population is reflected in employment participation and within-family time exchange. This paper investigates how nonmarket time and labour market time vary across migrant groups from non-English speaking country backgrounds (NESCB) compared with English-speaking country background migrants and non-Indigenous Australians (ESB&AU). It uses a longitudinal instrumental variable method to deal with biases caused by endogeneity and unobserved heterogeneity. We find that nonmarket time is strongly influenced by family circumstances such as having young children and partner’s circumstances (health status and life events including health shocks). The relationship of these factors with nonmarket time varies across our two major groups. For example, the relationship between a partner’s life events and partner’s health status and the other partner’s nonmarket time are significantly greater for NESCB migrant couples than for ESB&AU couples. This connects with our initial theories about the collectivist cultural backgrounds in NESCB couples in maintaining gender roles or different levels of economic security facing NESB migrants that affect how they allocate caregiving and housework time, especially when a partner becomes ill or face a life event. This paper also shows clear evidence of health selection into the labour market, and a strong trade-off between nonmarket and market time in both groups.