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

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Journal Article

Abstract

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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