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Partnered Women's Labour Supply and Child‐Care Costs in Australia: Measurement Error and the Child‐Care Price *
Author(s) -
BREUNIG ROBERT,
GONG XIAODONG,
KING ANTHONY
Publication year - 2012
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/j.1475-4932.2012.00797.x
Subject(s) - child care , economics , labour economics , labour supply , variable (mathematics) , demographic economics , medicine , nursing , mathematical analysis , mathematics
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.