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Who bears the full cost of children? Evidence from a collective demand system

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  • Antonella Caiumi

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  • Federico Perali

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Abstract

This paper measures how the costs of children are shared between the father and the mother by estimating a gender-specific demand system related to the demand for market goods, household products and leisure within a collective approach. The estimates illustrate how the intra-household distribution of resources varies across households with and without children and how wages and non-labor income affect the allocation rule in both single-earner and double-earner households. In the presence of a child, both parents, but mothers especially, increase their involvement in home production at the expense of the enjoyment of leisure. This commitment decreases as the child gets older. In general, mothers control less than half of the household resources, while they bear more than half of the cost of maintaining a child. Copyright Springer-Verlag Berlin Heidelberg 2015

Suggested Citation

  • Antonella Caiumi & Federico Perali, 2015. "Who bears the full cost of children? Evidence from a collective demand system," Empirical Economics, Springer, vol. 49(1), pages 33-64, August.
  • Handle: RePEc:spr:empeco:v:49:y:2015:i:1:p:33-64
    DOI: 10.1007/s00181-014-0854-2
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    References listed on IDEAS

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    Cited by:

    1. Elena Bárcena-Martín & Maite Blázquez & Santiago Budría & Ana I. Moro Egido, 2016. "Child deprivation and social benefits. Europe in cross-national perspective," ThE Papers 16/03, Department of Economic Theory and Economic History of the University of Granada..

    More about this item

    Keywords

    Cost of children; Collective demand system; Intra-household allocation; Household production; Full income; Sharing rule; D12; D13; J22;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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