Building on previous work published by the Institute (Gray, Qu, de Vaus and Millward 2002), this paper explores the determinants of employment for lone and coupled Australian mothers. The analysis is based on the Family and Work Decisions (FAWD) survey, conducted by the Australian Institute of Family Studies in late 2002. This is a survey of 2,405 mothers (approximately half coupled and half single) that looks at a wide range of reasons as to why mothers with dependent children decide whether or not to participate in the paid labour market. The FAWD survey is unique in that it allows us to consider the relative importance of financial, social and psychological factors in the labour force participation decision. It is also unique because of the large sample of lone mothers from whom information was collected, thus allowing statistically reliable estimates to be made about this specific group.

Results from the analysis confirm those of earlier studies that the employment rates of lone and couple mothers are substantially reduced when they have children to care for, and that the impact is larger the younger are the children. Also consistent with earlier studies is the finding that lower levels of educational, a poor grasp of English or basic mathematics and renting or owning your own home (rather than purchasing) all reduce the probability that mothers will be in paid employment.

Where this study expands our understanding is in relation to mothers' attitudes about a career, their attitudes about the effects of maternal employment on children's development and well-being, and the impact of long-term health problems within the family. Mothers who were more career oriented were much more likely to be in employment than those who were not. As well, those who saw working mothers as a positive role model for their children or who did not feel their children were disadvantaged by having a working mother, also had a higher probability of being in employment. Of course, the direction of this association has not been established. And mothers who had a long-term health problem or who had to care for a family member who had a long-term health problem or disability were much less likely to be employed.

Importantly, the study found that for each of these determinants on the probability of employment, the impact on lone mothers was larger than that for couple mothers.