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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