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The Measurement of Child Costs: Evidence from Ireland

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  • Bargain, Olivier

    ()
    (University of Aix-Marseille II)

  • Donni, Olivier

    ()
    (University of Cergy-Pontoise)

  • Gbakou, Monnet Benoit Patrick

    ()
    (University of Hohenheim)

Abstract

We apply an extension of the Rothbarth approach to estimate the share of household resources accruing to children (i.e., the cost of children) in Ireland. The method also allows us to identify the economies of scale in the household and indifference scales in Lewbel (2003)’s sense. A practical aspect of the present approach is that it does not require price variation. The identification of the children's share requires the observation of adult-specific goods as in the traditional Rothbarth method. We compare our findings to previous results for Ireland.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4672.

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Length: 24 pages
Date of creation: Dec 2009
Date of revision:
Publication status: published in: Economic and Social Review, 2010, 41 (1), 1-20
Handle: RePEc:iza:izadps:dp4672

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Keywords: indifference scales; consumer demand; collective model; sharing rule; cost of children; equivalence scales;

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References

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  1. Denis Conniffe & Brian Nolan & Christopher T. Whelan, 1999. "Household Composition, Living Standards, and "Needs"," Papers, Economic and Social Research Institute (ESRI) WP106, Economic and Social Research Institute (ESRI).
  2. 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.
  3. Lazear, Edward P. & Michael, Robert T., 1988. "Allocation of Income within the Household," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226469669, March.
  4. Bargain, Olivier & Donni, Olivier, 2009. "The Measurement of Child Costs: A Rothbarth-Type Method Consistent with Scale Economies," IZA Discussion Papers 4654, Institute for the Study of Labor (IZA).
  5. Arthur Lewbel, 2002. "Calculating Compensation in Cases of Wrongful Death," Boston College Working Papers in Economics, Boston College Department of Economics 523, Boston College Department of Economics, revised 07 Jun 2002.
  6. Richard Blundell & Jean-Marc Robin, 1999. "Estimation in large and disaggregated demand systems: an estimator for conditionally linear systems," Working Papers 249982, Institut National de la Recherche Agronomique, France.
  7. Lewbel, Arthur & Pendakur, Krishna, 2008. "Estimation of collective household models with Engel curves," Journal of Econometrics, Elsevier, Elsevier, vol. 147(2), pages 350-358, December.
  8. Conniffe, Denis, 1992. "The Non-constancy of Equivalence Scales," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 38(4), pages 429-43, December.
  9. Conniffe, Denis & Keogh, Gary, 1988. "Equivalence Scales and Costs of Children," Research Series, Economic and Social Research Institute (ESRI), Economic and Social Research Institute (ESRI), number GRS142.
  10. Blundell & Robin, 2000. "Latent separability : grouping goods without weak separability," Working Papers 156158, Institut National de la Recherche Agronomique, France.
  11. Micklewright, John, 2004. "Child Poverty in English-Speaking Countries," IZA Discussion Papers 1113, Institute for the Study of Labor (IZA).
  12. Sara Cantillon & Brian Nolan, 2001. "Poverty Within Households: Measuring Gender Differences Using Nonmonetary Indicators," Feminist Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 7(1), pages 5-23.
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  14. Martin Browning & Pierre-Andrée Chiappori & Arthur Lewbel, 2004. "Estimating Consumption Economies of Scale, Adult Equivalence Scales, and Household Bargaining Power," Boston College Working Papers in Economics, Boston College Department of Economics 588, Boston College Department of Economics, revised 01 Sep 2010.
  15. Barrett, Alan & Coleman, Kieran & Delaney, Liam & Fahey, Tony & Gannon, Brenda & Kearney, Ide & McCarthy, Yvonne & Nolan, Brian & Walsh, John R., 2006. "Budget Perspectives 2007," Research Series, Economic and Social Research Institute (ESRI), Economic and Social Research Institute (ESRI), number BMI192 edited by Callan, Tim.
  16. Gronau, Reuben, 1991. "The Intrafamily Allocation of Goods--How to Separate the Adult from the Child," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 9(3), pages 207-35, July.
  17. Richard Blundell & Pierre-Andr� Chiappori & Costas Meghir, 2005. "Collective Labor Supply with Children," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 113(6), pages 1277-1306, December.
  18. Gronau, Reuben, 1988. "Consumption Technology and the Intrafamily Distribution of Resources:," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 96(6), pages 1183-1205, December.
  19. Shelly J. Lundberg & Robert A. Pollak & Terence J. Wales, 1997. "Do Husbands and Wives Pool Their Resources? Evidence from the United Kingdom Child Benefit," Journal of Human Resources, University of Wisconsin Press, vol. 32(3), pages 463-480.
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Cited by:
  1. Jason Loughrey & Cathal O’Donoghue, 2012. "The Welfare Impact of Price Changes on Household Welfare and Inequality 1999-2011," The Economic and Social Review, Economic and Social Studies, Economic and Social Studies, vol. 43(1), pages 31–66.
  2. Olivier Bargain & Olivier Donni, 2010. "The Measurement of Child Costs: A Rothbarth-Type Method Consistent with Scale Economies," Working Papers, School Of Economics, University College Dublin 201001, School Of Economics, University College Dublin.
  3. Menon, Martina & Pendakur, Krishna & Perali, Federico, 2012. "On the expenditure-dependence of children’s resource shares," Economics Letters, Elsevier, Elsevier, vol. 117(3), pages 739-742.
  4. Bargain, Olivier & Donni, Olivier & Kwenda, Prudence, 2014. "Intrahousehold distribution and poverty: Evidence from Côte d'Ivoire," Journal of Development Economics, Elsevier, Elsevier, vol. 107(C), pages 262-276.
  5. Bargain, Olivier & Donni, Olivier, 2012. "Expenditure on children: A Rothbarth-type method consistent with scale economies and parents' bargaining," European Economic Review, Elsevier, Elsevier, vol. 56(4), pages 792-813.
  6. BARGAIN Olivier & DONNI Olivier, 2010. "The Measurement of Child Costs: A Rothbarth-Type Method Consistent with Scale Economies and Parents? Bargaining," CEPS/INSTEAD Working Paper Series 2010-30, CEPS/INSTEAD.
  7. Olivier Bargain & Olivier Donni & Prudence Kwenda, 2013. "Intrahousehold Distribution and Poverty: Evidence from Côte d’Ivoire," THEMA Working Papers 2013-23, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.

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