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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. Ted Bergstrom, 1995. "Economic in a Family Way," Papers _028, University of Michigan, Department of Economics.
  2. Anyck Dauphin & Abdel-Rahmen El Lahga & Bernard Fortin & Guy Lacroix, 2010. "Are Children Decision-Makers Within the Household?," CIRANO Working Papers 2010s-17, CIRANO.
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  12. Benoît Rapoport & Catherine Sofer & Anne Solaz, 2011. "Household production in a collective model: some new results," Journal of Population Economics, Springer, vol. 24(1), pages 23-45, January.
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  15. Bourguignon, F., 1999. "The Cost of Children: May the Collective Approach to Household Behavior Help?," DELTA Working Papers 1999-01, DELTA (Ecole normale supérieure).
  16. Richard Blundell & Thomas MaCurdy, 1998. "Labour supply: a review of alternative approaches," IFS Working Papers W98/18, Institute for Fiscal Studies.
  17. Thomas, D., 1989. "Intra-Household Resource Allocation: An Inferential Approach," Papers 586, Yale - Economic Growth Center.
  18. Chiappori, Pierre-Andre, 1988. "Rational Household Labor Supply," Econometrica, Econometric Society, vol. 56(1), pages 63-90, January.
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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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