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