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Who Takes Care of the Children? The quantity–quality model revisited

  • Lundholm, Michael

    ()

    (Department of Economics)

  • Ohlsson, Henry

    ()

    (Department of Economics)

We study the Becker and Lewis (1973) quantity–quality model of children adding an explicit child care time constraint for parents. They can purchase day care or take care of the children themselves. Our results are: (i) If there is a combination of purchased and own care, the effect of income on fertility is ambiguous, even if quantity of children is a normal good in the standard sense. This is the Becker and Lewis (1973) result. (ii) If, however, there only is purchased care, the income effect on fertility is positive when quantity is a normal good. (iii) If, on the other hand, there only is own care, there is a different kind of quantity–quality trade–off. The income effect on fertility is positive if quantity is a closer complement than quality to the consumption of goods.

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Paper provided by Uppsala University, Department of Economics in its series Working Paper Series with number 1998:23.

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Length: 9 pages
Date of creation: 10 Nov 1998
Date of revision:
Publication status: Published in Journal of Population Economics, 2002, pages 455-461.
Handle: RePEc:hhs:uunewp:1998_023
Contact details of provider: Postal: Department of Economics, Uppsala University, P. O. Box 513, SE-751 20 Uppsala, Sweden
Phone: + 46 18 471 25 00
Fax: + 46 18 471 14 78
Web page: http://www.nek.uu.se/
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  1. Becker, Gary S & Lewis, H Gregg, 1973. "On the Interaction between the Quantity and Quality of Children," Journal of Political Economy, University of Chicago Press, vol. 81(2), pages S279-88, Part II, .
  2. Ermisch, John F, 1988. "Purchased Child Care, Optimal Family Size and Mother's Employment," CEPR Discussion Papers 238, C.E.P.R. Discussion Papers.
  3. Gary S. Becker, 1960. "An Economic Analysis of Fertility," NBER Chapters, in: Demographic and Economic Change in Developed Countries, pages 209-240 National Bureau of Economic Research, Inc.
  4. Samuelson, Paul A, 1974. "Complementarity-An Essay on the 40th Anniversary of the Hicks-Allen Revolution in Demand Theory," Journal of Economic Literature, American Economic Association, vol. 12(4), pages 1255-89, December.
  5. Ermisch, John F, 1989. "Purchased Child Care, Optimal Family Size and Mother's Employment: Theory and Econometric Analysis," Journal of Population Economics, Springer, vol. 2(2), pages 79-102.
  6. Joseph Hotz, V. & Klerman, Jacob Alex & Willis, Robert J., 1993. "The economics of fertility in developed countries," Handbook of Population and Family Economics, in: M. R. Rosenzweig & Stark, O. (ed.), Handbook of Population and Family Economics, edition 1, volume 1, chapter 7, pages 275-347 Elsevier.
  7. Nerlove, Marc & Razin, Assaf & Sadka, Efraim, 1986. "Some Welfare Theoretic Implications of Endogenous Fertility," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 27(1), pages 3-31, February.
  8. Cigno, Alessandro, 1983. "On Optimal Family Allowances," Oxford Economic Papers, Oxford University Press, vol. 35(1), pages 13-22, March.
  9. Connelly, Rachel, 1992. "The Effect of Child Care Costs on Married Women's Labor Force Participation," The Review of Economics and Statistics, MIT Press, vol. 74(1), pages 83-90, February.
  10. Lundholm, M. & Ohlsson, H., 1995. "Wages for Women and Publicly Financed Day Care," Papers 1995-23, Uppsala - Working Paper Series.
  11. Cigno, Alessandro, 1986. "Fertility and the Tax-Benefit System: A Reconsideration of the Theory of Family Taxation," Economic Journal, Royal Economic Society, vol. 96(384), pages 1035-51, December.
  12. Assaf Razin & Efraim Sadka, 1995. "Population Economics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262181606, June.
  13. Batina, Raymond G., 1986. "The optimal linear income tax with tax credits contingent on fertility," Journal of Public Economics, Elsevier, vol. 30(2), pages 219-235, July.
  14. David M. Blau & Alison P. Hagy, 1998. "The Demand for Quality in Child Care," Journal of Political Economy, University of Chicago Press, vol. 106(1), pages 104-146, February.
  15. Nerlove, Marc & Razin, Assaf & Sadka, Efraim, 1984. "Income distribution policies with endogenous fertility," Journal of Public Economics, Elsevier, vol. 24(2), pages 221-230, July.
  16. Becker, Gary S & Tomes, Nigel, 1976. "Child Endowments and the Quantity and Quality of Children," Journal of Political Economy, University of Chicago Press, vol. 84(4), pages S143-62, August.
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