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Children and labour supply

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  • Ajay Singh Behl

Abstract

This article analyses the role of parents' expected payoffs of children and their labour supply. It uses the current education and income status of the parent and the educational expectations, health and behaviour problems of the child in order to form the expectations regarding the payoffs. We use a three stage (child, adult and old) model for individuals in order to capture the trade-off between supply of labour in the adult stage and consumption (from savings, investments and transfers from government and child) in the old age. The labour supply increases with the educational expectations, hopefulness and expected future income of the parent.

Suggested Citation

  • Ajay Singh Behl, 2010. "Children and labour supply," Applied Economics Letters, Taylor & Francis Journals, vol. 17(3), pages 251-255, February.
    • Handle: RePEc:taf:apeclt:v:17:y:2010:i:3:p:251-255
    DOI: 10.1080/13504850701720072
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    References listed on IDEAS

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    1. Thomas E. MaCurdy, 1980. "An Empirical Model of Labor Supply in a Life Cycle Setting," NBER Working Papers 0421, National Bureau of Economic Research, Inc.
    2. Arleen Leibowitz, 1974. "Home Investments in Children," NBER Chapters, in: Economics of the Family: Marriage, Children, and Human Capital, pages 432-456, National Bureau of Economic Research, Inc.
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    4. Christian Gollier, 2005. "Optimal Illusions and Decisions under Risk," CESifo Working Paper Series 1382, CESifo.
    5. Heckman, James J, 1976. "A Life-Cycle Model of Earnings, Learning, and Consumption," Journal of Political Economy, University of Chicago Press, vol. 84(4), pages 11-44, August.
    6. Arleen Leibowitz, 1974. "Home Investments in Children," NBER Chapters, in: Marriage, Family, Human Capital, and Fertility, pages 111-135, National Bureau of Economic Research, Inc.
    7. Leibowitz, Arleen, 1974. "Home Investments in Children," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages 111-131, Part II, .
    8. Carroll, Christopher D. & Samwick, Andrew A., 1997. "The nature of precautionary wealth," Journal of Monetary Economics, Elsevier, vol. 40(1), pages 41-71, September.
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    Cited by:

    1. Di Zhou & Jingyi Zhang & Shixuan Li & Xiaoru Zhang, 2026. "Sex Composition of Children and Competitive Poverty Prevention," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 182(2), pages 1-28, March.

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