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Semiparametric Base-Independent Equivalence Scales and the Cost of Children in Switzerland

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  • Aline Bütikofer

Abstract

How much additional income does a couple with two children need to be equally well-off as a childless couple? This question is important for public policy decisions on social benefits or child allowances. Since equivalence scales express the change in the cost of attaining a certain welfare level when the household size and composition varies, they provide an answer. This paper provides semiparametric estimates of consumption-based equivalence scales by applying the extended partially linear model to the Swiss Household Budget Survey 2000-2005. The results permit welfare comparisons across households and provide an indirect measure of the cost of children.

Suggested Citation

  • Aline Bütikofer, 2012. "Semiparametric Base-Independent Equivalence Scales and the Cost of Children in Switzerland," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 148(I), pages 1-35, March.
  • Handle: RePEc:ses:arsjes:2012-i-1
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    References listed on IDEAS

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    More about this item

    Keywords

    Semiparametric estimation; equivalence scales; Engel curves;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure

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