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Pocket money and child effort at school


  • François-Charles Wolff

    () (LEN, University of Nantes CNAV and INED, Paris)

  • Christine Barnet-Verzat

    () (LEN, University of Nantes)


In this paper, we study the relationship between the provision of parental pocket and the level of effort undertaken by the child at school. Under altruism, an increased amount of parental transfer should reduce the child's effort. Our empirical analysis is based on a French data set including about 1,400 parent-child pairs. We find that children do not undertake less effort when their parents are more generous.

Suggested Citation

  • François-Charles Wolff & Christine Barnet-Verzat, 2008. "Pocket money and child effort at school," Economics Bulletin, AccessEcon, vol. 9(13), pages 1-10.
  • Handle: RePEc:ebl:ecbull:eb-08i20009

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    References listed on IDEAS

    1. Barnet-Verzat, Christine & Wolff, Francois-Charles, 2002. "Motives for pocket money allowance and family incentives," Journal of Economic Psychology, Elsevier, vol. 23(3), pages 339-366, June.
    2. Heckman, James J, 1978. "Dummy Endogenous Variables in a Simultaneous Equation System," Econometrica, Econometric Society, vol. 46(4), pages 931-959, July.
    3. Chami, Ralph, 1998. "Private Income Transfers and Market Incentives," Economica, London School of Economics and Political Science, vol. 65(260), pages 557-580, November.
    4. Christian Dustmann & John Micklewright & Najma Rajah, 1996. "Intra-household transfers and the part-time work of children," IFS Working Papers W96/03, Institute for Fiscal Studies.
    5. François-Charles Wolff, 2006. "Parental transfers and the labor supply of children," Journal of Population Economics, Springer;European Society for Population Economics, vol. 19(4), pages 853-877, October.
    6. Dustmann, Christian & Micklewright, John & van Soest, Arthur, 2004. "In-School Work Experience, Parental Allowances, and Wages," IZA Discussion Papers 1235, Institute for the Study of Labor (IZA).
    7. Furnham, Adrian, 2001. "Parental attitudes to pocket money/allowances for children," Journal of Economic Psychology, Elsevier, vol. 22(3), pages 397-422, June.
    8. Wolff François-Charles & Barnet-Verzat Christine, 2003. "Labor opportunities against family intergenerational exchange," Economics Bulletin, AccessEcon, vol. 10(1), pages 1-7.
    9. Charlene Kalenkoski & Sabrina Pabilonia, 2010. "Parental transfers, student achievement, and the labor supply of college students," Journal of Population Economics, Springer;European Society for Population Economics, vol. 23(2), pages 469-496, March.
    10. repec:ebl:ecbull:v:10:y:2003:i:1:p:1-7 is not listed on IDEAS
    11. Fan, Chinn-Ping, 2000. "Teaching children cooperation -- An application of experimental game theory," Journal of Economic Behavior & Organization, Elsevier, vol. 41(3), pages 191-209, March.
    12. Bergstrom, Theodore C, 1989. "A Fresh Look at the Rotten Kid Theorem--and Other Household Mysteries," Journal of Political Economy, University of Chicago Press, vol. 97(5), pages 1138-1159, October.
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    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • D1 - Microeconomics - - Household Behavior


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