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Household Choices and Child Development

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  • Del Boca, Daniela

    ()
    (University of Turin)

  • Flinn, Christopher

    ()
    (New York University)

  • Wiswall, Matthew

    ()
    (Arizona State University)

Abstract

The growth in labor market participation among women with young children has raised concerns about the potential negative impact of the mother's absence from home on child outcomes. Recent data show that mother's time spent with children has declined in the last decade, while the indicators of children's cognitive and noncognitive outcomes have worsened. The objective of our research is to estimate a model of the cognitive development process of children nested within an otherwise standard model of household life cycle behavior. The model generates endogenous dynamic interrelationships between the child quality and employment processes in the household, which are found to be consistent with patterns observed in the data. The estimated model is used to explore the effects of schooling subsidies and employment restrictions on household welfare and child development.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5155.

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Length: 58 pages
Date of creation: Aug 2010
Date of revision:
Publication status: published in: Review of Economic Studies, vol 81:137-185, 2014
Handle: RePEc:iza:izadps:dp5155

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Keywords: household labor supply; child development; time allocation;

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  1. Bernal, Raquel & Keane, Michael P., 2010. "Quasi-structural estimation of a model of childcare choices and child cognitive ability production," Journal of Econometrics, Elsevier, Elsevier, vol. 156(1), pages 164-189, May.
  2. Gordon B. Dahl & Lance Lochner, 2005. "The Impact of Family Income on Child Achievement," NBER Working Papers 11279, National Bureau of Economic Research, Inc.
  3. Gordon Dahl & Lance Lochner, 2008. "The Impact of Family Income on Child Achievement: Evidence from the Earned Income Tax Credit," NBER Working Papers 14599, National Bureau of Economic Research, Inc.
  4. Francine D. Blau & Adam J. Grossberg, 1990. "Maternal Labor Supply and Children's Cognitive Development," NBER Working Papers 3536, National Bureau of Economic Research, Inc.
  5. Løken, Katrine V., 2010. "Family income and children's education: Using the Norwegian oil boom as a natural experiment," Labour Economics, Elsevier, Elsevier, vol. 17(1), pages 118-129, January.
  6. Liu, Haiyong & Mroz, Thomas A. & van der Klaauw, Wilbert, 2010. "Maternal employment, migration, and child development," Journal of Econometrics, Elsevier, Elsevier, vol. 156(1), pages 212-228, May.
  7. Susanne Schennach & James Heckman & Flavio Cunha, 2007. "Estimating the Technology of Cognitive and Noncognitive Skill Formation," 2007 Meeting Papers, Society for Economic Dynamics 973, Society for Economic Dynamics.
  8. Løken, Katrine Vellesen & Mogstad, Magne & Wiswall, Matthew, 2011. "What Linear Estimators Miss: The E ects of Family Income on Child Outcomes," Working Papers in Economics, University of Bergen, Department of Economics 02/11, University of Bergen, Department of Economics.
  9. Raquel Bernal, 2008. "The Effect Of Maternal Employment And Child Care On Children'S Cognitive Development," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 49(4), pages 1173-1209, November.
  10. Becker, Gary S & Tomes, Nigel, 1979. "An Equilibrium Theory of the Distribution of Income and Intergenerational Mobility," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 87(6), pages 1153-89, December.
  11. Martin Dooley & Jennifer Stewart, 2004. "Family income and child outcomes in Canada," Canadian Journal of Economics, Canadian Economics Association, Canadian Economics Association, vol. 37(4), pages 898-917, November.
  12. Susan L. Averett & Lisa A. Gennetian & H. Elizabeth Peters, 2005. "Paternal child care and children's development," Journal of Population Economics, Springer, Springer, vol. 18(3), pages 391-414, 09.
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