RDP 2007-05: Labour Force Participation and Household Debt Appendix B: Tables of Results

Rochelle Belkar, Lynne Cockerell and Rebecca Edwards

June 2007

Table B1: Cross-section LFP Model Results – Women
Coefficients Median Selected unit Marginal effects at the median
Owner-occupied mortgage debt outstanding −3.62×10−7
(4.97×10−7)		 $0 $10,000 −5.01×10−4
(6.94×10−4)
Owner-occupied mortgage debt-to-income 1.66×10−5***
(5.58×10−6)		 0 0.1 2.29×10−7***
(9.95×10−8)
Debt-servicing ratio(a) −2.35×10−3***
(8.31×10−4)		 0 0.1 –
Square root of debt-servicing ratio 4.05×10−1***
(1.45×10−1)		      
Other debt outstanding 1.54×10−6***
(4.35×10−7)		 $3,000 $1,000 2.13×10−4***
(7.77×10−8)
Other debt-to-income 3.63×10−5
(3.48×10−5)		 0.08 0.1 5.02×10−7
(4.95×10−7)
Financial assets 8.60×10−9
(1.59×10−7)		 $6,700 $1,000 1.19×10−6
(2.20×10−5)
Non-financial assets −1.09×10−7
(8.78×10−8)		 $212,000 $10,000 −1.50×10−4
(1.26×10−4)
Investment income −4.00×10−7
(7.10×10−6)		 $0 $100 −5.53×10−6
(9.82×10−5)
Other income −9.39×10−7
(7.57×10−7)		 $40,213 $1,000 −1.30×10−4
(1.07×10−4)
Family Tax Benefit A −2.80×10−5**
(1.10×10−5)		 $1,029 $100 −3.87×10−4**
(1.82×10−4)
Family Tax Benefit B 1.57×10−4***
(4.47×10−5)		 $1,645 $100 2.16×10−3***
(6.17×10−4)
Age −0.096
(0.059)		 38 1 year 0.004
(0.003)
Age2 0.002**
(0.001)		      
Years in the labour force 0.067***
(0.024)		 14.08 1 year −0.001
(0.003)
Years in the labour force2 −0.003***
(0.000)		      
Years not in the labour force −0.167***
(0.023)		 4 1 year −0.020***
(0.003)
Years not in the labour force2 0.003***
(0.001)		      
University educated 0.609***
(0.098)		 0 Compared to did not finish Year 12 0.053***
(0.017)
Has a diploma 0.194**
(0.079)		 0 Compared to did not finish Year 12 0.023**
(0.011)
High school qualification 0.151
(0.094)		 0 Compared to did not finish Year 12 0.019
(0.013)
Married or de facto −0.182*
(0.108)		 1 Compared to single −0.022*
(0.013)
Spouse's labour force status 0.291***
(0.093)		 1 Compared to spouse not in the labour force 0.049**
(0.020)
Has child aged 0–4 years −1.944***
(0.156)		 0 Compared to no children aged 0–4 years −0.614***
(0.045)
Has child aged 5–14 years −0.348***
(0.115)		 0 Compared to no children aged 5–14 years −0.061***
(0.021)
Has child aged 15–24 years 0.284***
(0.085)		 0 Compared to no children aged 15–24 years 0.032***
(0.012)
Has child aged 25 years or older −0.022
(0.231)		 0 Compared to no children aged 25 years or older −0.003
(0.033)
Has children aged 0–4 and 5–14 years 1.011***
(0.148)		 0 Compared to no children aged 0–4 or 5–14 years 0.066***
(0.018)
Has health condition −0.898***
(0.093)		 0 Compared to no health condition −0.216***
(0.041)
Speaks English well 0.525**
(0.255)		 1 Compared to does not speak English well 0.103
(0.066)
Australian born 0.181*
(0.097)		 1 Compared to born in a non-English-speaking country 0.028
(0.018)
Born in an English-speaking country 0.186
(0.134)		 0 Compared to born in a non-English-speaking country 0.022
(0.015)
Resides in a major city 0.038
(0.072)		 0 Compared to living in a capital city 0.005
(0.010)
Resides in a rural area 0.060
(0.100)		 0 Compared to living in a capital city 0.008
(0.013)
Constant 1.959*
(1.047)		      
Observations 2,999      
Pseudo R2 0.35      
Notes: Robust standard errors in parentheses. ***, ** and * represent significance at the 1, 5 and 10 per cent levels respectively.
(a) Marginal effect cannot be measured at zero due to the square root.
Table B2: Cross-section LFP Model Results-Men
Coefficients Median Selected unit Marginal effects at the median
Owner-occupied mortgage debt outstanding 1.64×10−6
(1.02×10−6)		 $0 $10,000 6.82×10−4
(5.90×10−4)
Owner-occupied mortgage debt-to-income 9.73×10−6
(6.63×10−6)		 0 0.1 4.05×10−8
(3.19×10−8)
Debt-servicing ratio(a) −5.29×10−4***
(1.06×10−4)		 0 0.1 –
Square root of debt-servicing ratio 6.72×10−2***
(1.65×10−2)		      
Other debt outstanding 1.73×10−6
(1.69×10−6)		 $4,000 $1,000 7.21×10−5
(8.01×10−5)
Other debt-to-income 3.02×10−6
(5.37×10−6)		 0.15 0.1 1.26×10−8
(2.34×10−8)
Financial assets −2.44×10−7
(3.56×10−6)		 $6,800 $1,000 −1.02×10−5
(1.56×10−5)
Non-financial assets 1.26×10−7
(2.37×10−6)		 $198,000 $10,000 5.26×10−5
(1.01×1O−4)
Investment income −8.45×10−6*
(4.68×10−6)		 $0 $100 −3.52×10−5
(2.79×10−5)
Other income −3.10×10−6*
(1.68×10−6)		 $21,078 $1,000 −1.29×10−4
(9.30×10−5)
Family Tax Benefit A −4.69×10−5***
(1.77×10−5)		 $0 $100 −1.96×10−4*
(1.10×10−4)
Family Tax Benefit B 4.03×10−5
(8.84×10−5)		 $0 $100 1.68×10−4
(3.77×10−4)
Age 0.115
(0.108)		 38 1 year 0.001
(0.002)
Age2 −0.001
(0.001)		      
Years in the labour force −0.068
(0.058)		 19.28 1 year −0.002
(0.002)
Years in the labour force2 0.000
(0.001)		      
Years not in the labour force −0.295***
(0.043)		 0 1 year −0.012***
(0.002)
Years not in the labour force2 0.007***
(0.001)		      
University educated 0.830***
(0.192)		 0 Compared to did not finish Year 12 0.015*
(0.009)
Has a diploma 0.257**
(0.124)		 0 Compared to did not finish Year 12 0.008
(0.006)
High school qualification 0.209
(0.191)		 0 Compared to did not finish Year 12 0.007
(0.007)
Married or de facto 0.282*
(0.165)		 1 Compared to single 0.016*
(0.009)
Spouse's labour force status 0.434***
(0.148)		 0 Compared to spouse not in the labour force 0.012
(0.007)
Has child aged 0–4 years −0.241
(0.277)		 0 Compared to no children aged 0–4 years −0.013
(0.018)
Has child aged 5–14 years −0.038
(0.200)		 0 Compared to no children aged 5–14 years −0.002
(0.009)
Has child aged 15–24 years 0.051
(0.166)		 0 Compared to no children aged 15–24 years 0.002
(0.006)
Has child aged 25 years or older 0.188
(0.464)		 0 Compared to no children aged 25 years or older 0.006
(0.013)
Has children aged 0–4 and 5–14 years 0.534
(0.344)		 0 Compared to no children aged 0–4 or 5–14 years 0.013*
(0.008)
Has health condition −1.249***
(0.113)		 0 Compared to no health condition −0.174***
(0.058)
Speaks English well −0.163
(0.378)		 1 Compared to does not speak English well −0.006
(0.012)
Australian born 0.175
(0.173)		 1 Compared to born in a non-English-speaking country 0.009
(0.011)
Born in an English-speaking country −0.099
(0.211)		 0 Compared to born in a non-English-speaking country −0.005
(0.011)
Resides in a major city 0.043
(0.121)		 0 Compared to living in a capital city 0.002
(0.005)
Resides in a rural area −0.225
(0.144)		 0 Compared to living in a capital city −0.012
(0.010)
Constant 0.242
(1.829)		      
Observations 2,568      
Pseudo R2 0.48      
Notes: Robust standard errors in parentheses. ***, ** and * represent significance at the 1, 5 and 10 per cent levels respectively.
(a) Marginal effect cannot be measured at zero due to the square root.
Table B3: Panel LFP Model Results – Women
Probit random effects Logit coefficients
Coefficients Median (non-zero mortgage debt) Marginal effects(a) Random effects Conditional fixed effects
Owner-occupied mortgage debt outstanding 4.87×10−7*
(2.74×10−7)		 $110,000 1.77×10−4
(1.12×10−4)		 9.45×10−7**
(4.58×10−7)		 −2.84×10−7
(6.45×10−7)
Owner-occupied mortgage debt-to-income −2.04×10−6
(3.90×10−6)		 2.08 −7.42×10−9
(1.43×10−8)		 −4.57×10−6
(7.19×10−6)		 1.58×10−5
(1.90×10−5)
Debt-servicing ratio −1.32×10−4
(8.11×10−5)		 0.22 1.11×10−4***
(4.18×10−5)		 −2.49×10−4*
(1.45×10−4)		 −3.99×10−4
(3.31×10−4)
Square root of debt-servicing ratio 2.92×10−2***
(1.10×10−2)		     5.58×10−2***
(2.10×10−2)		 4.03×10−2
(2.86×10−2)
Value of owner-occupied home −9.80×10−8
(1.10×10−7)		 $210,000 −3.56×10−5
(4.11×10−5)		 −1.55×10−7
(1.79×10−7)		 3.37×10−8
(3.19×10−7)
Investment income 1.24×10−6
(3.03×10−6)		 $0 4.51×10−6
(1.10×10−5)		 1.49×10−6
(5.15×10−6)		 7.29×10−7
(5.81×10−6)
Other income −9.61×10−7
(5.89×10−7)		 $43,025 −3.49×10−5
(2.36×10−5)		 −1.72×10−6*
(9.86×10−7)		 −6.71×10−7
(1.45×10−6)
Family Tax Benefit A −2.02×10−5**
(9.10×10−6)		 $1,486 −7.32×10−5*
(4.18×10−5)		 −3.63×10−5**
(1.50×10−5)		 −3.93×10−6
(2.33×10−5)
Family Tax Benefit B 1.16×10−4***
(3.47×10−5)		 $1,814 4.22×10−4***
(1.47×10−4)		 1.96×10−4***
(5.82×10−5)		 1.11×10−4
(7.30×10−5)
Age −0.022
(0.055)		 39 0.001
(0.001)		 −0.046
(0.088)		 _
Age2 0.001
(0.001)		     0.001
(0.001)		 −0.003
(0.003)
Years in the labour force 0.136***
(0.025)		 15 0.001
(0.001)		 0.222***
(0.039)		 0.384
(0.268)
Years in the labour force2 −0.004***
(0.001)		     −0.006***
(0.001)		 −0.010***
(0.004)
Years not in the labour force −0.227***
(0.023)		 4 −0.007***
(0.001)		 −0.376***
(0.036)		 −0.695***
(0.258)
Years not in the labour force2 0.004***
(0.001)		     0.006***
(0.001)		 0.018***
(0.005)
University educated 1.039***
(0.104)		 0 0.014***
(0.005)		 1.737***
(0.164)		 1.712
(1.309)
Has a diploma 0.381***
(0.085)		 0 0.009**
(0.004)		 0.631***
(0.134)		 0.788*
(0.448)
High school qualification 0.279***
(0.103)		 0 0.007**
(0.004)		 0.468***
(0.161)		 0.145
(0.677)
Married or de facto −0.300***
(0.099)		 1 −0.008**
(0.003)		 −0.490***
(0.162)		 −0.492*
(0.268)
Spouse's labour force status 0.414***
(0.083)		 1 0.024**
(0.009)		 0.707***
(0.137)		 0.500***
(0.192)
Has child aged 0–4 years −2.284***
(0.122)		 0 −0.523***
(0.051)		 −3.974***
(0.208)		 −2.785***
(0.265)
Has child aged 5–14 years −0.595***
(0.097)		 0 −0.041***
(0.011)		 −0.996***
(0.161)		 −1.198***
(0.270)
Has child aged 15–24 years 0.370***
(0.071)		 0 0.009***
(0.003)		 0.639***
(0.117)		 0.037
(0.175)
Has child aged 25 years or older 0.099
(0.216)		 0 0.003
(0.006)		 0.166
(0.354)		 −0.316
(0.518)
Has children aged 0–4 and 5–14 years 1.131***
(0.118)		 0 0.014***
(0.005)		 1.984***
(0.200)		 1.465***
(0.270)
Has health condition −0.968***
(0.073)		 0 −0.097***
(0.025)		 −1.709***
(0.123)		 −0.789***
(0.171)
Speaks English well 0.641***
(0.231)		 1 0.047
(0.030)		 1.169***
(0.380)		 0.686
(0.622)
Australian born 0.175
(0.107)		 1 0.008
(0.006)		 0.285*
(0.167)		 –
Born in an English-speaking country 0.133
(0.147)		 0 0.004
(0.004)		 0.210
(0.230)		 —
Resides in a major city 0.089
(0.074)		 0 0.003
(0.003)		 0.163
(0.118)		 −0.036
(0.300)
Resides in a rural area 0.054
(0.097)		 0 0.002
(0.003)		 0.137
(0.155)		 −0.769**
(0.381)
Wave 2 (2002) 0.031
(0.057)		 0 0.001
(0.002)		 0.053
(0.097)		 0.481
(0.348)
Wave 3 (2003) −0.013
(0.059)		 0 −0.000
(0.002)		 −0.015
(0.100)		 0.771
(0.662)
Wave 4 (2004) 0.056
(0.062)		 0 0.002
(0.002)		 0.104
(0.106)		 1.283
(0.985)
Wave 5 (2005) 0.215***
(0.068)		 0 0.006**
(0.003)		 0.376***
(0.116)		 2.010
(1.317)
Constant 0.609
(0.983)		     1.232
(1.584)		  
Observations (person-years) 13,672     13,672 3,375
Cases (number of individuals) 3,350     3,350 890
Notes: Standard errors in parentheses. ***, ** and * represent significance at the 1, 5 and 10 per cent levels respectively,
(a) Marginal effects shown are for the selected units shown in Table B1.
Table B4: Panel LFP Model Results – Men
Probit random effects Logit coefficients
Coefficients Median (non-zero mortgage debt) Marginal effects(a) Random effects Conditional fixed effects
Owner-occupied mortgage debt outstanding 2.10×10−6***
(6.56×10−7)		 $113,000 3.76×10−5
(2.57×10−5)		 3.99×10−6***
(6.23×10−6)		 3.73×10−6**
(6.86×10−6)
Owner-occupied mortgage debt-to-income 7.62×10−6
(8.00×10−6)		 4.30 1.37×10−9
(1.72×10−9)		 1.25×10−5
(1.46×10−5)		 3.53×10−5
(2.98×10−5)
Debt-servicing ratio −2.33×10−4***
(7.75×10−5)		 0.46 4.12×10−6***
(1.35×10−6)		 −4.22×10−4***
(1.38×10−4)		 −9.00×10−4
(5.58×10−4)
Square root of debt-servicing ratio 3.13×10−2***
(1.02×10−2)		     5.94×10−2***
(1.95×10−2)		 7.94×10−2
(6.09×10−2)
Value of owner-occupied home 4.07×10−7
(2.60×10−7)		 $200,000 7.31×10−6
(6.98×10−6)		 6.67×10−7
(4.52×10−7)		 4.73×10−7
(9.81×10−7)
Investment income −2.66×10−6
(3.58×10−6)		 $0 −4.77×10−7
(7.07×10−7)		 −4.91×10−6
(6.29×10−6)		 5.88×10−6
(1.42×10−5)
Other income −2.41×10−6*
(1.41×10−6)		 $21,755 −4.33×10−6
(3.85×10−6)		 −4.17×10−6*
(2.44×10−6)		 −8.32×10−6*
(4.63×10−6)
Family Tax Benefit A −8.34×10−5***
(1.48×10−5)		 $0 −1.50×10−5
(1.04×10−5)		 −1.52×10−4***
(2.56×10−5)		 −8.56×10−5
(5.43×10−5)
Family Tax Benefit B 1.29×10−4**
(5.72×10−5)		 $0 2.32×10−5
(1.91×10−5)		 2.09×10−4**
(1.03×10−4)		 8.58×10−5
(1.47×10−6)
Age −0.066
(0.091)		 39 −0.000
(0.000)		 −0.121
(0.156)		 –
Age2 0.000
(0.001)		     0.001
(0.002)		 0.022***
(0.007)
Years in the labour force 0.006
(0.041)		 20.17 0.000
(0.000)		 0.010
(0.070)		 0.827
(0.558)
Years in the labour force2 0.000
(0.001)		     0.001
(0.001)		 −0.020**
(0.008)
Years not in the labour force −0.387***
(0.035)		 0 −0.001***
(0.000)		 −0.663***
(0.058)		 −1.400***
(0.503)
Years not in the labour force2 0.011***
(0.001)		     0.019***
(0.002)		 0.014
(0.014)
University educated 1.260***
(0.168)		 0 0.001
(0.000)		 2.192***
(0.291)		 _(b)
Has a diploma 0.303***
(0.112)		 0 0.000
(0.000)		 0.500***
(0.190)		 −1.713
(1.543)
High school qualification 0.290*
(0.172)		 0 0.000
(0.000)		 0.438
(0.293)		 −3.082
(2.006)
Married or de facto 0.452***
(0.133)		 1 0.002*
(0.001)		 0.831***
(0.231)		 1.181**
(0.469)
Spouse's labour force status 0.313***
(0.112)		 0 0.000
(0.000)		 0.590***
(0.200)		 0.027
(0.312)
Has child aged 0–4 years −0.287
(0.193)		 0 −0.001
(0.001)		 −0.530
(0.346)		 −0.091
(0.524)
Has child aged 5–14 years 0.019
(0.157)		 0 0.000
(0.000)		 0.091
(0.280)		 −0.470
(0.541)
Has child aged 15–24 years 0.028
(0.131)		 0 0.000
(0.000)		 0.051
(0.230)		 −0.026
(0.439)
Has child aged 25 years or older −0.748*
(0.431)		 0 −0.005
(0.007)		 −1.446**
(6.726)		 −1.232
(1.713)
Has children aged 0–4 and 5–14 years 0.372*
(0.222)		 0 0.000
(0.000)		 0.647*
(0.392)		 0.493
(0.684)
Has health condition −1.530***
(0.089)		 0 −0.039**
(0.017)		 −2.717***
(0.155)		 −1.625***
(0.260)
Speaks English well 0.058
(0.312)		 1 0.000
(0.001)		 0.116
(0.539)		 −0.232
(0.869)
Australian born 0.116
(0.151)		 1 0.000
(0.000)		 0.184
(0.261)		 –
Born in an English-speaking country 0.020
(0.197)		 0 0.000
(0.000)		 −0.006
(0.338)		 –
Resides in a major city −0.178*
(0.105)		 0 −0.000
(0.000)		 −0.329*
(0.182)		 −0.707
(0.586)
Resides in a rural area −0.299**
(0.129)		 0 −0.001
(0.001)		 −0.497**
(0.222)		 −1.358**
(0.622)
Wave 2 (2002) 0.036
(0.098)		 0 0.000
(0.000)		 0.067
(0.178)		 −1.449*
(0.755)
Wave 3 (2003) 0.033
(0.101)		 0 0.000
(0.000)		 0.053
(0.181)		 −2.980**
(1.438)
Wave 4 (2004) 0.079
(0.106)		 0 0.000
(0.000)		 0.155
(0.190)		 −4.421**
(2.134)
Wave 5 (2005) 0.217*
(0.113)		 0 0.000
(0.000)		 0.415**
(0.204)		 −5.524*
(2.846)
Constant 4,137***
(1.604)		     7.309***
(2.769)		  
Observations (person-years) 11,374     11,374 1,018
Cases (number of individuals) 2,822     2,822 253
Notes: Standard errors in parentheses. ***, ** and * represent significance at the 1, 5 and 10 per cent levels respectively.
(a) Marginal effects shown are for the selected units shown in Table B1.
(b) No men in the conditional fixed-effects sample complete a university education during the sample period.