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Child Expenditure: The Role of Working Mothers, Lone Parents, Sibling Composition and Household Provision

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Author Info

  • Farrell, Lisa

    (affiliation not available)

  • Shields, Michael A.

    ()
    (Monash University)

Abstract

This paper uses detailed diary information from the British Family Expenditure Survey (FES) to investigate the expenditure patterns of school-age children. We estimate a Quadratic Almost Ideal Demand System, and find that, whilst most commodities are normal goods, sweets and toys are luxury items for children. Children of lone parents have lower budget shares for expenditure on soft drinks, leisure, personal goods and books/magazines, but higher budget shares for expenditure on sweets and vice products (alcohol, cigarettes and gambling). Having a working mother increases child expenditure on food products and toys. A higher parental budget share, on any given commodity, is generally associated with an increased child budget share suggesting that children mimic their parent’s expenditure patterns.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 388.

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Length: 31 pages
Date of creation: Nov 2001
Date of revision:
Publication status: published in: Canadian Journal of Economics, 2007, 40 (2), 445-467
Handle: RePEc:iza:izadps:dp388

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Related research

Keywords: lone parents; quadratic almost ideal demand system; Child expenditure; working mothers; sibling composition;

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References

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  1. Bertrand Melenberg & Arthur van Soest & Erwin Charlier, 2000. "An analysis of housing expenditure using semiparametric cross-section models," Empirical Economics, Springer, vol. 25(3), pages 437-462.
  2. Richard Blundell & Alan Duncan & Krishna Pendakur, 1998. "Semiparametric estimation and consumer demand," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 13(5), pages 435-461.
  3. James Banks & Richard Blundell & Arthur Lewbel, 1997. "Quadratic Engel Curves And Consumer Demand," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 527-539, November.
  4. Browning, Martin, 1992. "Children and Household Economic Behavior," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1434-75, September.
  5. MacDonald, Ziggy & Shields, Michael A., 2000. "The Impact of Alcohol Consumption on Occupational Attainment in England," IZA Discussion Papers 166, Institute for the Study of Labor (IZA).
  6. Gary S. Becker, . "Fertility and the Economy," University of Chicago - Population Research Center 92-3, Chicago - Population Research Center.
  7. Deaton, Angus, 1986. "Demand analysis," Handbook of Econometrics, in: Z. Griliches† & M. D. Intriligator (ed.), Handbook of Econometrics, edition 1, volume 3, chapter 30, pages 1767-1839 Elsevier.
  8. Charlier, E. & Melenberg, B. & Soest, A.H.O. van, 1997. "An Analysis of Housing Expenditure Using Semiparametric Models and Panel Data," Discussion Paper 1997-14, Tilburg University, Center for Economic Research.
  9. Blundell, Richard & Pashardes, Panos & Weber, Guglielmo, 1993. "What Do We Learn About Consumer Demand Patterns from Micro Data?," American Economic Review, American Economic Association, vol. 83(3), pages 570-97, June.
  10. Deaton, Angus S, 1989. "Looking for Boy-Girl Discrimination in Household Expenditure Data," World Bank Economic Review, World Bank Group, vol. 3(1), pages 1-15, January.
  11. Edward C. Norton & Richard C. Lindrooth & Susan T. Ennett, 1998. "Controlling for the endogeneity of peer substance use on adolescent alcohol and tobacco use," Health Economics, John Wiley & Sons, Ltd., vol. 7(5), pages 439-453.
  12. Basu, Kaushik & Van, Pham Hoang, 1998. "The Economics of Child Labor," American Economic Review, American Economic Association, vol. 88(3), pages 412-27, June.
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