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The Intrafamily Allocation of Goods--How to Separate the Adult from the Child

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  • Gronau, Reuben

Abstract

Separability between parents' and children's consumption is a necessary assumption in any attempt to impute the intrafamily allocation of goods. This assumption implies an estimation procedure where the observed effect of demographic variables on the marginal propensity to consume adult goods is used as a key for identifying the rule governing the distribution between children's and parent's consumption. Using the U.S. 1972 Consumption Expenditure Survey, the author finds that white and black families tend to allocate three-quarters of their consumption to parents and one-quarter to children. Tests for robustness, for selectivity bias, and of the separability assumption itself uphold these findings. Copyright 1991 by University of Chicago Press.

Suggested Citation

  • Gronau, Reuben, 1991. "The Intrafamily Allocation of Goods--How to Separate the Adult from the Child," Journal of Labor Economics, University of Chicago Press, vol. 9(3), pages 207-235, July.
    • Handle: RePEc:ucp:jlabec:v:9:y:1991:i:3:p:207-35
    DOI: 10.1086/298266
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    Cited by:

    1. Olivier Bargain & Prudence Kwenda & Miracle Ntuli, 2017. "Gender bias and the intrahousehold distribution of resources: Evidence from African nuclear households in South Africa," WIDER Working Paper Series 071, World Institute for Development Economic Research (UNU-WIDER).
    2. Olivier Bargain & Olivier Donni, 2012. "Targeting and child poverty," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 39(4), pages 783-808, October.
    3. Olivier Bargain & Guy Lacroix & Luca Tiberti, 2018. "Validating the collective model of household consumption using direct evidence on sharing," Working Papers PMMA 2018-06, PEP-PMMA.
    4. Bargain, Olivier & Lacroix, Guy & Tiberti, Luca, 2021. "Intrahousehold Resource Allocation and Individual Poverty: Assessing Collective Model Predictions against Direct Evidence on Sharing," IZA Discussion Papers 14406, Institute of Labor Economics (IZA).
    5. Geoffrey Lancaster & Ranjan Ray, 1998. "Comparison of Alternative Models of Household Equivalence Scales: The Australian Evidence on Unit Record Data," The Economic Record, The Economic Society of Australia, vol. 74(224), pages 1-14, March.
    6. Ursicino Carrascal Arranz, 1996. "Estimación de escalas de equivalencia de consumo mediante un modelo de demenda casi ideal (AIDS) ampliado," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 6, pages 25-38, Diciembre.
    7. Olivier Bargain & Olivier Donni, 2007. "A Theory of Child Targeting," Working Papers 200710, Geary Institute, University College Dublin.
    8. Bargain, Olivier & Donni, Olivier, 2012. "Expenditure on children: A Rothbarth-type method consistent with scale economies and parents' bargaining," European Economic Review, Elsevier, vol. 56(4), pages 792-813.
    9. Olivier Bargain & Prudence Kwenda & Miracle Ntuli, 2017. "Gender bias and the intrahousehold distribution of resources: Evidence from African nuclear households in South Africa," WIDER Working Paper Series wp-2017-71, World Institute for Development Economic Research (UNU-WIDER).
    10. Olivier Bargain & Olivier Donni, 2009. "Revisiting the cost of children : theory and evidence from Ireland," Open Access publications 10197/2014, School of Economics, University College Dublin.
    11. Bargain, Olivier & Donni, Olivier & Kwenda, Prudence, 2014. "Intrahousehold distribution and poverty: Evidence from Côte d'Ivoire," Journal of Development Economics, Elsevier, vol. 107(C), pages 262-276.
    12. White, Howard & Masset, Edoardo, 2002. "Child poverty in Vietnam: using adult equivalence scales to estimate income-poverty for different age groups," MPRA Paper 777, University Library of Munich, Germany.
    13. David E. Bloom & Cecilia Conrad & Cynthia Miller, 1996. "Child Support and Fathers' Remarriage and Fertility," NBER Working Papers 5781, National Bureau of Economic Research, Inc.
    14. Malone, Lauren, 2007. "Migrants’ Remittances and Investments in Children’s Human Capital: The Role of Asymmetric Preferences in Mexico," Center for Global, International and Regional Studies, Working Paper Series qt23n6s2p3, Center for Global, International and Regional Studies, UC Santa Cruz.
    15. Olivier Bargain & Olivier Donni & Monnet Gbakou, 2010. "The Measurement of Child Costs: Evidence from Ireland," The Economic and Social Review, Economic and Social Studies, vol. 41(1), pages 1-20.
    16. Chiuri, Maria Concetta, 2000. "Individual decisions and household demand for consumption and leisure," Research in Economics, Elsevier, vol. 54(3), pages 277-324, September.
    17. Patricia Apps, 2003. "Gender, Time Use and Models of the Household," CEPR Discussion Papers 464, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    18. Wilman J. Iglesias & Alexandre B. Coelho, 2020. "Poverty and inequality within Brazilian households: an application of a collective consumption model," Empirical Economics, Springer, vol. 58(4), pages 1923-1952, April.
    19. Sunil Kumar & Renuka Mahadevan, 2008. "Construction of An Adult Equivalence Index to Measure Intra-household Inequality and Poverty: Case Study," Discussion Papers Series 363, School of Economics, University of Queensland, Australia.
    20. Bargain, Olivier & Donni, Olivier, 2009. "The Measurement of Child Costs: A Rothbarth-Type Method Consistent with Scale Economies," IZA Discussion Papers 4654, Institute of Labor Economics (IZA).
    21. Garcia-Diaz Rocio, 2012. "Demand-Based Cost-of-Children Estimates and Child Poverty," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 12(1), pages 1-32, January.
    22. Apps, Patricia & Rees, Ray, 2001. "Household production, full consumption and the costs of children," Labour Economics, Elsevier, vol. 8(6), pages 621-648, December.
    23. BARGAIN Olivier & DONNI Olivier, 2010. "The Measurement of Child Costs: A Rothbarth-Type Method Consistent with Scale Economies and Parents’ Bargaining," LISER Working Paper Series 2010-30, Luxembourg Institute of Socio-Economic Research (LISER).
    24. Michael Malcolm, 2013. "Preferences and Policies: An Intra-Household Demand System," Economic Papers, The Economic Society of Australia, vol. 32(1), pages 67-80, March.
    25. Olivier Donni, 2015. "Measuring the cost of children," IZA World of Labor, Institute of Labor Economics (IZA), pages 132-132, March.

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