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Childcare and Commitment within Households

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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.

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  • 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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    Cited by:

    1. 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.
    2. Arthur Lewbel & Krishna Pendakur, 2021. "Estimating A Model of Inefficient Cooperation and Consumption in Collective Households," Boston College Working Papers in Economics 1048, Boston College Department of Economics.
    3. 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.
    4. Matthias Doepke & Michèle Tertilt, 2019. "Does female empowerment promote economic development?," Journal of Economic Growth, Springer, vol. 24(4), pages 309-343, December.
    5. Laurens Cherchye & Pierre-André Chiappori & Bram De Rock & Charlotte Ringdal & Frederic Vermeulen, 2021. "Feed the children," IFS Working Papers W21/32, Institute for Fiscal Studies.
    6. 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.
    7. Arthur Lewbel & Krishna Pendakur, 2022. "Inefficient Collective Households: Cooperation and Consumption [Efficient risk sharing with limited commitment and storage]," The Economic Journal, Royal Economic Society, vol. 132(645), pages 1882-1893.
    8. 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.
    9. 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.
    10. Libertad González & Hosny Zoabi, 2021. "Does Paternity Leave Promote Gender Equality within Households?," CESifo Working Paper Series 9430, CESifo.
    11. Gupta, Tanu & Negi, Digvijay, 2021. "Daughter Vs. Daughter-in-Law: Kinship Roles and Women’s Time Use in India," 2021 Conference, August 17-31, 2021, Virtual 315021, International Association of Agricultural Economists.
    12. 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.
    13. Bar, Michael & Hazan, Moshe & Leukhina, Oksana & Weiss, David & Zoabi, Hosny, 2017. "Is The Market Pronatalist? Inequality, Differential Fertility, and Growth Revisited," CEPR Discussion Papers 12376, C.E.P.R. Discussion Papers.
    14. 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).
    15. Afridi, Farzana & Bishnu, Monisankar & Mahajan, Kanika, 2019. "What Determines Women's Labor Supply? The Role of Home Productivity and Social Norms," IZA Discussion Papers 12666, Institute of Labor Economics (IZA).
    16. Matthias Doepke & Michèle Tertilt, 2019. "Does female empowerment promote economic development?," Journal of Economic Growth, Springer, vol. 24(4), pages 309-343, December.
    17. 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).

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    More about this item

    Keywords

    Time Use; Childcare; Education; Semi-Cooperative Model; Structural Estimation;
    All these keywords.

    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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