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Income Capability and Child Care

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Abstract

This paper has a twofold purpose. It argues firstly, that analysis of income distribution should be a part of the capability approach. Secondly, it argues that the capability approach is a good theoretical foundation for analysis of income distribution. The capability approach to human advantage has not hitherto been applied in mainstream analysis of income and wealth. The paper argues, on the one hand, that the capability approach needs to include a measure of access to economic goods; on the other hand that a capabilitydefinition of income avoids some problems inherent in the traditional, welfarist approach. A modified full income is proposed as a measure of income capability. Modified full income is Beckerian full income corrected for interalia constraints on time. Time needed to care for children (and other dependants) is a constraint on available time. The capability approach will seek to compute the cost of children (and other special needs) by identifying moral and legal constraints on time and other resources through open democratic discussion rather than econometric estimation.

Suggested Citation

  • Bojer, Hilde, 2006. "Income Capability and Child Care," Memorandum 14/2006, Oslo University, Department of Economics.
  • Handle: RePEc:hhs:osloec:2006_014
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    File URL: http://www.sv.uio.no/econ/english/research/unpublished-works/working-papers/pdf-files/2006/Memo-14-2006.pdf
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    1. John Rawls, 1974. "Reply to Alexander and Musgrave," The Quarterly Journal of Economics, Oxford University Press, vol. 88(4), pages 633-655.
    2. Fleurbaey, Marc, 1995. "Equal Opportunity or Equal Social Outcome?," Economics and Philosophy, Cambridge University Press, vol. 11(01), pages 25-55, April.
    3. Pollak, Robert A & Wales, Terence J, 1979. "Welfare Comparisons and Equivalence Scales," American Economic Review, American Economic Association, vol. 69(2), pages 216-221, May.
    4. Shelly Lundberg & Robert A. Pollak, 1996. "Bargaining and Distribution in Marriage," Journal of Economic Perspectives, American Economic Association, vol. 10(4), pages 139-158, Fall.
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    Cited by:

    1. Tania Burchardt, 2008. "Time and Income Poverty," CASE Reports casereport57, Centre for Analysis of Social Exclusion, LSE.
    2. Joris Ghysels & Josefine Vanhille & Gerlinde Verbist, 2011. "A care time benefit as a timely alternative for the non-working spouse compensation in the Belgian tax system," International Journal of Microsimulation, International Microsimulation Association, vol. 4(2), pages 57-72.
    3. Joris Ghysels & Gerlinde Verbist & Josefine Vanhille, 2010. "Taxing Care : enhancing the childcare time in the dual earner era," Working Papers 1001, Herman Deleeck Centre for Social Policy, University of Antwerp.

    More about this item

    Keywords

    Income Distribution; Capability Approach; Cost of Children;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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