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Collective Labor Supply and Child Care Expenditures: Theory and Application

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  • Chris Klaveren

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  • Joris Ghysels

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Abstract

In this study we examine the collective labor supply choices of dual-earner parents and take into account child care expenditures. We find that the individual labor supplies are hardly affected by changes in the prices of child care services. In addition, the child care price effects on the individual labor supplies are much smaller than the wage effects. Furthermore, we find that the additional earnings due to an increase in household non-labor income minus the child care expenditures are mainly transferred to the female partner.
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Suggested Citation

  • Chris Klaveren & Joris Ghysels, 2012. "Collective Labor Supply and Child Care Expenditures: Theory and Application," Journal of Labor Research, Springer, vol. 33(2), pages 196-224, June.
  • Handle: RePEc:spr:jlabre:v:33:y:2012:i:2:p:196-224
    DOI: 10.1007/s12122-011-9127-4
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    1. repec:eme:ceapzz:s0573-855520140000293006 is not listed on IDEAS
    2. D. Vandelannoote & P. Vanleenhove & A. Decoster & J. Ghysels & G. Verbist, 2015. "Maternal employment: the impact of triple rationing in childcare," Review of Economics of the Household, Springer, vol. 13(3), pages 685-707, September.
    3. Wim Van Lancker & Joris Ghysels, 2010. "Female employment, institutions and the role of reference groups: a multilevel analysis of 22 European countries," Working Papers 1002, Herman Deleeck Centre for Social Policy, University of Antwerp.
    4. Rolf Aaberge & Ugo Colombino, 2014. "Labour Supply Models," Contributions to Economic Analysis,in: Handbook of Microsimulation Modelling, volume 127, pages 167-221 Emerald Publishing Ltd.

    More about this item

    Keywords

    Collective model; Labor supply; Child care; 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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