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

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  • Antonella Caiumi
  • Federico Perali

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

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  • 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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    2. Echeverría, Lucía & Menon, Martina & Perali, Federico & Berges, Miriam, 2019. "Intra-household inequality and child welfare in Argentina," Nülan. Deposited Documents 3051, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    3. 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..
    4. Getachew Yirga Belete, 2021. "Impacts of Social Protection Programmes on Children’s Resources and Wellbeing: Evidence from Ethiopia," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 14(2), pages 681-712, April.
    5. Huihui LI, 2020. "Time Allocation to Housework and Childcare in Japan," Discussion Papers 2023, Graduate School of Economics, Kobe University.

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    More about this item

    Keywords

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

    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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