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Who Takes Care of the Children? The Quantity-Quality Model Revisited

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  • Lundhlom, M.
  • Ohlsson, H.

Abstract

We study the Becker and Lewis (1973) quality model of children adding an explicit child care time constraint for parents. They can purchase day car e or take care of the children themselves. Our results are: (i) If there is a combination of purchased and own care, the effect of income on fertility is ambiguous, even if quantity of children is a normal good in the standard sense. This is the Becker and Lewis (1973) result. (ii) If, however, there only is purchased care, the income effect on fertility is positive when quantity is a normal good. (iii)If, on the other hand, there only is own care, there is a different kind of quantity-quality trade-off. The income effect on fertility is positive if quantity is a closer complement than quality to the consumption of goods.

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Bibliographic Info

Paper provided by Uppsala - Working Paper Series in its series Papers with number 1998:23.

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Length: 9 pages
Date of creation: 1998
Date of revision:
Handle: RePEc:fth:uppaal:1998:23

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Postal: UPPSALA UNIVERSITY, DEPARTMENT OF ECONOMICS, S-751 20 UPPSALA SWEDEN.
Phone: + 46 18 471 25 00
Fax: + 46 18 471 14 78
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Web page: http://www.nek.uu.se/
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Keywords: FERTILITY ; CHILDREN ; TIME FACTOR;

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References

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  1. Assaf Razin & Efraim Sadka, 1995. "Population Economics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262181606, January.
  2. Connelly, Rachel, 1992. "The Effect of Child Care Costs on Married Women's Labor Force Participation," The Review of Economics and Statistics, MIT Press, vol. 74(1), pages 83-90, February.
  3. Samuelson, Paul A, 1974. "Complementarity-An Essay on the 40th Anniversary of the Hicks-Allen Revolution in Demand Theory," Journal of Economic Literature, American Economic Association, vol. 12(4), pages 1255-89, December.
  4. Becker, Gary S & Lewis, H Gregg, 1973. "On the Interaction between the Quantity and Quality of Children," Journal of Political Economy, University of Chicago Press, vol. 81(2), pages S279-88, Part II, .
  5. Gary S. Becker, 1960. "An Economic Analysis of Fertility," NBER Chapters, in: Demographic and Economic Change in Developed Countries, pages 209-240 National Bureau of Economic Research, Inc.
  6. Becker, Gary S & Tomes, Nigel, 1976. "Child Endowments and the Quantity and Quality of Children," Journal of Political Economy, University of Chicago Press, vol. 84(4), pages S143-62, August.
  7. David M. Blau & Alison P. Hagy, 1998. "The Demand for Quality in Child Care," Journal of Political Economy, University of Chicago Press, vol. 106(1), pages 104-146, February.
  8. Henry Ohlsson & Michael Lundholm, 1998. "Wages, taxes and publicly provided day care," Journal of Population Economics, Springer, vol. 11(2), pages 185-204.
  9. Cigno, Alessandro, 1986. "Fertility and the Tax-Benefit System: A Reconsideration of the Theory of Family Taxation," Economic Journal, Royal Economic Society, vol. 96(384), pages 1035-51, December.
  10. Ermisch, John F, 1989. "Purchased Child Care, Optimal Family Size and Mother's Employment: Theory and Econometric Analysis," Journal of Population Economics, Springer, vol. 2(2), pages 79-102.
  11. Joseph Hotz, V. & Klerman, Jacob Alex & Willis, Robert J., 1993. "The economics of fertility in developed countries," Handbook of Population and Family Economics, in: M. R. Rosenzweig & Stark, O. (ed.), Handbook of Population and Family Economics, edition 1, volume 1, chapter 7, pages 275-347 Elsevier.
  12. Cigno, Alessandro, 1983. "On Optimal Family Allowances," Oxford Economic Papers, Oxford University Press, vol. 35(1), pages 13-22, March.
  13. Nerlove, Marc & Razin, Assaf & Sadka, Efraim, 1986. "Some Welfare Theoretic Implications of Endogenous Fertility," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 27(1), pages 3-31, February.
  14. Ermisch, John F, 1988. "Purchased Child Care, Optimal Family Size and Mother's Employment," CEPR Discussion Papers 238, C.E.P.R. Discussion Papers.
  15. Batina, Raymond G., 1986. "The optimal linear income tax with tax credits contingent on fertility," Journal of Public Economics, Elsevier, vol. 30(2), pages 219-235, July.
  16. Nerlove, Marc & Razin, Assaf & Sadka, Efraim, 1984. "Income distribution policies with endogenous fertility," Journal of Public Economics, Elsevier, vol. 24(2), pages 221-230, July.
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Citations

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Cited by:
  1. Wolter, Stefan C., 2003. "Sibling Rivalry: A Six Country Comparison," IZA Discussion Papers 734, Institute for the Study of Labor (IZA).
  2. Junichi Minagawa & Thorsten Upmann, 2006. "Labor Supply and the Demand for Child Care: An Intertemporal Approach," CESifo Working Paper Series 1819, CESifo Group Munich.
  3. Schrage, Andrea, 2007. "Low Fertility of Highly Educated Women: The Impact of Child Care Infrastructure," University of Regensburg Working Papers in Business, Economics and Management Information Systems 421, University of Regensburg, Department of Economics.
  4. Åslund, Olof & Grönqvist, Hans, 2007. "Family size and child outcomes: Is there really no trade-off?," Working Paper Series 2007:15, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  5. Wolter, Stefan C. & Coradi Vellacott, Maja, 2002. "Sibling Rivalry: A Look at Switzerland with PISA Data," IZA Discussion Papers 594, Institute for the Study of Labor (IZA).
  6. Rafael Barrera Gutiérrez, 2011. "El vacío institucional en el modelo de elección racional aplicado a la fecundidad," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 13(25), pages 223-248, July-Dece.

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