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Mums and Their Sons, Dads and Their Daughters: Panel Data Evidence of Interdependent Marginal Utilities across 14 EU Countries

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Author Info
José Alberto Molina () (University of Zaragoza and IZA)
María Navarro () (FEDEA, Madrid)
Ian Walker () (University of Warwick, Princeton University and IZA)

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Abstract

We study how fathers and mothers income satisfaction correlates with the income satisfaction of their sons and daughters, as well as with other economic and sociodemographic variables. We estimate these correlations using data on parents and children in households surveyed in the eight waves of the European Community Household Panel- ECHP (1994-2001) for 14 EU countries. To assess the robustness of these correlations, we use siblings in the Panel and we investigate the sensitivity of the estimates with the inclusion of other control variables. We also adopt a multi-level random effects ordered probit specification, that uses step-parents in the data, to allow us to distinguish nature effects from nurture effects. Our main results show evidence of strong altruism effects, but these estimated effects differ across countries, differ between mothers and fathers, and differ between sons and daughters.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2734.

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Length: 42 pages
Date of creation: Apr 2007
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Handle: RePEc:iza:izadps:dp2734

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Related research
Keywords: parents and children; income satisfaction; interdependent marginal utilities; altruism; Europe;

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Find related papers by JEL classification:
D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
D60 - Microeconomics - - Welfare Economics - - - General
D64 - Microeconomics - - Welfare Economics - - - Altruism
C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data

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