This paper investigates how families decide how juveniles use their time. The problem is analyzed in three variations: (i) a ‘decentralized’ scheme, in which parents control the main budget, but their children dispose of their time as they see fit, together with any earnings from work on their own account; (ii) ‘hierarchy’, in which parents can enforce, at some cost, particular levels of schooling and supervised work contributing to the main budget; and (iii) the cooperative solution, in which resources are pooled and the threat point is one of the non-cooperative outcomes. Adults choose which game is played. While the subgame perfect equilibrium of the overall game is pareto-efficient, it may yield less education than ‘hierarchy’. Restrictions on child labor and compulsory schooling generally affect both the threat point and the feasible set of bargaining outcomes. Families may choose more schooling than the legal minimum.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gersbach, Hans & Siemers, Lars-H. R., 2010.
"Land Reforms And Economic Development,"
Cambridge University Press, vol. 14(04), pages 527-547, September.
- Bell, Clive & Gersbach, Hans, 2001.
"Child Labor and the Education of a Society,"
IZA Discussion Papers
338, Institute for the Study of Labor (IZA).
- Galor, Oded & Zeira, Joseph, 1988.
"Income Distribution and Macroeconomics,"
51644, University Library of Munich, Germany, revised 01 Sep 1989.
- Heckman, James J., 2008.
"Schools, Skills, and Synapses,"
IZA Discussion Papers
3515, Institute for the Study of Labor (IZA).
- Shelly Lundberg & Jennifer Romich & Kwok Tsang, 2009.
"Decision-making by children,"
Review of Economics of the Household,
Springer, vol. 7(1), pages 1-30, March.
- Shelly Lundberg & Jennifer Romich & Kwok Ping Tsang, 2007. "Decision Making By Children," Working Papers UWEC-2007-24, University of Washington, Department of Economics.
- Lundberg, Shelly & Romich, Jennifer & Tsang, Kwok P., 2007. "Decision-Making by Children," IZA Discussion Papers 2952, Institute for the Study of Labor (IZA).
- Cox, Donald & Jakubson, George, 1995. "The connection between public transfers and private interfamily transfers," Journal of Public Economics, Elsevier, vol. 57(1), pages 129-167, May.
- Gary S. Becker, 1981. "A Treatise on the Family," NBER Books, National Bureau of Economic Research, Inc, number beck81-1, December.
- Bell, Clive & Gersbach, Hans & Schneider, Maik T., 2010.
IZA Discussion Papers
5036, Institute for the Study of Labor (IZA).
- Barham, Vicky & Boadway, Robin & Marchand, Maurice & Pestieau, Pierre, 1995.
"Education and the poverty trap,"
European Economic Review,
Elsevier, vol. 39(7), pages 1257-1275, August.
- BARHAM, Vicky & BOADWAY, Robin & MARCHAND, Maurice & PESTIEAU, Pierre, 1992. "Education and the poverty trap," CORE Discussion Papers 1992010, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Barham, V. & Boadway, R. & Marchand, M. & Pestieau, P., . "Education and the poverty trap," CORE Discussion Papers RP 1173, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Dessy, Sylvain E., 2000. "A defense of compulsive measures against child labor," Journal of Development Economics, Elsevier, vol. 62(1), pages 261-275, June.
- Robert A. Pollak, 2011.
"Family Bargaining and Taxes: A Prolegomenon to the Analysis of Joint Taxation ,"
CESifo Economic Studies,
CESifo, vol. 57(2), pages 216-244, June.
- Pollak, Robert, 2007. "Family Bargaining and Taxes: A Prolegomenon to the Analysis of Joint Taxation," IZA Discussion Papers 3109, Institute for the Study of Labor (IZA).
- Cox, Donald, 1987. "Motives for Private Income Transfers," Journal of Political Economy, University of Chicago Press, vol. 95(3), pages 508-46, June.
- 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 1138-59, October.
- Moshe Hazan & Binyamin Berdugo, 2002.
"Child Labour, Fertility, and Economic Growth,"
Royal Economic Society, vol. 112(482), pages 810-828, October.
- Banerjee, Abhijit V., 2004. "Educational policy and the economics of the family," Journal of Development Economics, Elsevier, vol. 74(1), pages 3-32, June.
- Gary S. Becker, 1974.
"A Theory of Social Interactions,"
NBER Working Papers
0042, National Bureau of Economic Research, Inc.
- Loury, Glenn C, 1981. "Intergenerational Transfers and the Distribution of Earnings," Econometrica, Econometric Society, vol. 49(4), pages 843-67, June.
When requesting a correction, please mention this item's handle: RePEc:eee:gamebe:v:74:y:2012:i:1:p:32-51. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.