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Intra-household transfers and the part-time work of children

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Author Info

  • Christian Dustmann

    ()
    (Institute for Fiscal Studies and University College London)

  • Mickelwright, J
  • Rajah, N

Abstract

We analyse labour supply of 16 year old British children together with the cash transfers made to them by their parents. We develop a theoretical framework with an altruistic parent and a selfish child, which serves as the basis for the empirical specification in which labour supply and transfers are jointly determined. We estimate various specifications of the econometric model. Our results confirm that parental transfers and the child's labour supply are heavily dependent on each other and also show the influence of several other factors. For example, transfers are not very elastic with respect to parental income.

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Bibliographic Info

Paper provided by Institute for Fiscal Studies in its series IFS Working Papers with number W96/03.

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Date of creation: Jan 1996
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Handle: RePEc:ifs:ifsewp:96/03

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References

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  1. Michael, Robert T & Tuma, Nancy Brandon, 1984. "Youth Employment: Does Life Begin at 16?," Journal of Labor Economics, University of Chicago Press, vol. 2(4), pages 464-76, October.
  2. Blundell, Richard W & Smith, Richard J, 1989. "Estimation in a Class of Simultaneous Equation Limited Dependent Variable Models," Review of Economic Studies, Wiley Blackwell, vol. 56(1), pages 37-57, January.
  3. Becker, Gary S, 1981. "Altruism in the Family and Selfishness in the Market Place," Economica, London School of Economics and Political Science, vol. 48(189), pages 1-15, February.
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Cited by:
  1. Kalenkoski, Charlene Marie & Sabrina Wulff Pabilonia, 2005. "Parental Transfers, Student Achievement, and the Labor Supply of College Students," Working Papers 387, U.S. Bureau of Labor Statistics.
  2. Wolff François-Charles & Barnet-Verzat Christine, 2003. "Labor opportunities against family intergenerational exchange," Economics Bulletin, AccessEcon, vol. 10(1), pages 1-7.
  3. Massimiliano Bratti, 2007. "Parents’ income and children’s school drop-out at 16 in England and Wales: evidence from the 1970 British Cohort Study," Review of Economics of the Household, Springer, vol. 5(1), pages 15-40, March.
  4. Ana Fernandes, 2011. "Altruism, labor supply and redistributive neutrality," Journal of Population Economics, Springer, vol. 24(4), pages 1443-1469, October.
  5. François-Charles Wolff & Christine Barnet-Verzat, 2008. "Pocket money and child effort at school," Economics Bulletin, AccessEcon, vol. 9(13), pages 1-10.
  6. Christian Dustmann & John Mickelwright & Najma Rajah & Stephen Smith, 1996. "Earning and learning: educational policy and the growth of part-time work by full-time pupils," Fiscal Studies, Institute for Fiscal Studies, vol. 17(1), pages 79-103, February.
  7. Sabrina Wulff Pabilonia, 2000. "The Role of the Family in Determining Youth Employment," JCPR Working Papers 151, Northwestern University/University of Chicago Joint Center for Poverty Research.
  8. François-Charles Wolff, 2006. "Parental transfers and the labor supply of children," Journal of Population Economics, Springer, vol. 19(4), pages 853-877, October.
  9. repec:ebl:ecbull:v:10:y:2003:i:1:p:1-7 is not listed on IDEAS
  10. Amy Peng & Ling Yang, 2009. "The Decision of Work and Study and Employment Outcomes," Working Papers 014, Ryerson University, Department of Economics.

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