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Collective Labor Supply and Child Care Expenditures: Theory and Application

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  • Chris Klaveren

    ()

  • Joris Ghysels

    ()

Abstract

In this study we examine the collective labor supply choices of dual-earner parents and take into account child care expenditures. We find that the individual labor supplies are hardly affected by changes in the prices of child care services. In addition, the child care price effects on the individual labor supplies are much smaller than the wage effects. Furthermore, we find that the additional earnings due to an increase in household non-labor income minus the child care expenditures are mainly transferred to the female partner.

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Bibliographic Info

Article provided by Springer in its journal Journal of Labor Research.

Volume (Year): 33 (2012)
Issue (Month): 2 (June)
Pages: 196-224

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Handle: RePEc:spr:jlabre:v:33:y:2012:i:2:p:196-224

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Web page: http://www.springer.com/economics/journal/12122

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Related research

Keywords: Collective model; Labor supply; Child care; D12; D13; J22;

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References

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  1. Chiappori, Pierre-André & Fortin, Bernard & Lacroix, Guy, 2001. "Marriage Market, Divorce Legislation and Household Labor Supply," Cahiers de recherche, Université Laval - Département d'économique 0103, Université Laval - Département d'économique.
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  6. Dauphin, Anyck & El Lahga, AbdelRahmen & Fortin, Bernard & Lacroix, Guy, 2008. "Are Children Decision-Makers Within the Household?," IZA Discussion Papers 3728, Institute for the Study of Labor (IZA).
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  15. Ted Bergstrom, 1995. "Economic in a Family Way," Papers _028, University of Michigan, Department of Economics.
  16. Helene Couprie, 2003. "Time allocation within the family: welfare implications of life in a couple," Labor and Demography, EconWPA 0312003, EconWPA.
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Cited by:
  1. Wim Van Lancker & Joris Ghysels, 2010. "Female employment, institutions and the role of reference groups: a multilevel analysis of 22 European countries," Working Papers 1002, Herman Deleeck Centre for Social Policy, University of Antwerp.

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