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

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  • ROBERT BREUNIG
  • XIAODONG GONG
  • ANTHONY KING

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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Bibliographic Info

Article provided by The Economic Society of Australia in its journal The Economic Record.

Volume (Year): 88 (2012)
Issue (Month): s1 (06)
Pages: 51-69

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Handle: RePEc:bla:ecorec:v:88:y:2012:i:s1:p:51-69

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Cited by:
  1. Barbara Hanel & Guyonne Kalb & Anthony Scott, 2012. "Nurses' Labour Supply Elasticities: The Importance of Accounting for Extensive Margins," Melbourne Institute Working Paper Series wp2012n09, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  2. Gong, Xiaodong & Breunig, Robert, 2012. "Child Care Assistance: Are Subsidies or Tax Credits Better?," IZA Discussion Papers 6606, Institute for the Study of Labor (IZA).
  3. Apps, Patricia & Kabátek, Jan & Rees, Ray & van Soest, Arthur, 2012. "Labor Supply Heterogeneity and Demand for Child Care of Mothers with Young Children," IZA Discussion Papers 7007, Institute for the Study of Labor (IZA).

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