Partnered Women's Labour Supply and Child-Care Costs in Australia: Measurement Error and the Child-Care Price

Breunig, R.; Gong, X.; King, A.

Economic Record 88: 51-69

2012


ISSN/ISBN: 0013-0249
Document Number: 315512
We show that measurement error in the constructed price of child-care can explain why previous Australian studies have found partnered women's labour supply to be unresponsive to child-care prices. Through improved data and improved construction of the child-care price variable, we find child-care price elasticities that are statistically significant, negative and in line with elasticities found in other developed countries.

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