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Childcare and Commitment within Households

Author

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  • Paula Eugenia Gobbi

Abstract

This paper proposes a semi-cooperative marital decision process to explain parentalunderinvestment in childcare. First, parents collectively choose the amount of labor tosupply and, in a second step, they each choose the amount of childcare as the outcomeof a Cournot game. Non-cooperative behavior stems from the lack of a credible commitmentbetween spouses regarding the amount of childcare they each supply. Thetheoretical model is able to reproduce that parental time with children increases bothwith an individual's education and with that of his/her partner. The limited commitmentproblem leads to an underinvestment in childcare and, hence, child quality:compared to the efficient provision of childcare, the semi-cooperative framework leadsto an amount of child quality that is 45% lower.

Suggested Citation

  • Paula Eugenia Gobbi, 2017. "Childcare and Commitment within Households," Working Papers ECARES ECARES 2017-51, ULB -- Universite Libre de Bruxelles.
    • Handle: RePEc:eca:wpaper:2013/263384
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    1. is not listed on IDEAS
    2. Bhaskar, V. & Li, Wenchao & Yi, Junjian, 2025. "Strategic parental investments in a competitive marriage market," European Economic Review, Elsevier, vol. 173(C).
    3. Arthur Lewbel & Krishna Pendakur, 2024. "Estimating a model of inefficient cooperation and consumption in collective households," Review of Economics of the Household, Springer, vol. 22(3), pages 865-907, September.
    4. Arthur Lewbel & Krishna Pendakur, 2022. "Inefficient Collective Households: Cooperation and Consumption," The Economic Journal, Royal Economic Society, vol. 132(645), pages 1882-1893.
    5. repec:ucl:cepeow:25-16 is not listed on IDEAS
    6. Cherchye, Laurens & Chiappori, Pierre-André & De Rock, Bram & Ringdal, Charlotte & Vermeulen, Frederic, 2021. "Feed the Children," IZA Discussion Papers 14687, Institute of Labor Economics (IZA).
    7. David de la Croix & Clara Delavallade, 2018. "Religions, Fertility, And Growth In Southeast Asia," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 59(2), pages 907-946, May.
    8. Thomas TB Baudin & Bram De Rock & Paula Eugenia Gobbi, 2021. "Economics and Family Structures," Working Papers ECARES 2021-21, ULB -- Universite Libre de Bruxelles.
    9. de la Croix, David & Perrin, Faustine, 2018. "How far can economic incentives explain the French fertility and education transition?," European Economic Review, Elsevier, vol. 108(C), pages 221-245.
    10. Libertad González & Hosny Zoabi, 2021. "Does Paternity Leave Promote Gender Equality within Households?," CESifo Working Paper Series 9430, CESifo.
    11. Alice Schoonbroodt, 2018. "Parental child care during and outside of typical work hours," Review of Economics of the Household, Springer, vol. 16(2), pages 453-476, June.
    12. David de la Croix & Faustine Perrin, 2016. "French Fertility and Education Transition: Rational Choice vs. Cultural Diffusion," LIDAM Discussion Papers IRES 2016007, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    13. Takuya Obara & Yoshitomo Ogawa, 2020. "Optimal Taxation in an Endogenous Fertility Model with Non-Cooperative Couples," Discussion Paper Series 211, School of Economics, Kwansei Gakuin University, revised Jan 2021.
    14. Afridi, Farzana & Bishnu, Monisankar & Mahajan, Kanika, 2024. "What determines women's labor supply? The role of home productivity and social norms," Journal of Demographic Economics, Cambridge University Press, vol. 90(1), pages 55-87, March.
    15. Takuya Obara & Yoshitomo Ogawa, 2025. "Optimal Nonlinear Income Taxation for Non-Cooperative Couples," Discussion Paper Series 291, School of Economics, Kwansei Gakuin University, revised Jun 2025.
    16. Takuya Obara & Yoshitomo Ogawa, 2024. "Optimal taxation in an endogenous fertility model with non-cooperative behavior," Review of Economics of the Household, Springer, vol. 22(1), pages 173-197, March.
    17. Matthias Doepke & Michèle Tertilt, 2019. "Does female empowerment promote economic development?," Journal of Economic Growth, Springer, vol. 24(4), pages 309-343, December.
    18. Philip DeCicca & Harry Krashinsky, 2023. "The effect of education on overall fertility," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(1), pages 471-503, January.
    19. Ryo Sakamoto, 2023. "Family bargaining over parental leave: A collective household model with endogenous gender power," Pacific Economic Review, Wiley Blackwell, vol. 28(5), pages 613-637, December.
    20. David de la Croix & Thomas Baudin, 2015. "La croissance économique," LIDAM Discussion Papers IRES 2015021, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    21. Tanu Gupta & Digvijay S. Negi, 2021. "Daughter vs. Daughter-in-law: Kinship roles and women's time use in India," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2021-002, Indira Gandhi Institute of Development Research, Mumbai, India.
    22. Michael Bar & Moshe Hazan & Oksana Leukhina & David Weiss & Hosny Zoabi, 2018. "Why did rich families increase their fertility? Inequality and marketization of child care," Journal of Economic Growth, Springer, vol. 23(4), pages 427-463, December.
    23. Hazan, Moshe & Zoabi, Hosny & Weiss, David & Leukhina, Oksana & Bar, Michael, 2017. "Is The Market Pronatalist? Inequality, Differential Fertility, and Growth Revisited," CEPR Discussion Papers 12376, C.E.P.R. Discussion Papers.
    24. Paula E. Gobbi & Juliane Parys & Gregor Schwerhoff, 2018. "Intra‐household allocation of parental leave," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 51(1), pages 236-274, February.

    More about this item

    Keywords

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    JEL classification:

    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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