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Intra-household transfers and the part-time work of children

  • Christian Dustmann

    ()

    (Institute for Fiscal Studies and University College London)

  • Mickelwright, J

    (Institute for Fiscal Studies)

  • Rajah, N

    (Institute for Fiscal Studies)

We analyse labour supply of 16 year old British children together with the cash transfers made to them by their parents. We develop a theoretical framework with an altruistic parent and a selfish child, which serves as the basis for the empirical specification in which labour supply and transfers are jointly determined. We estimate various specifications of the econometric model. Our results confirm that parental transfers and the child's labour supply are heavily dependent on each other and also show the influence of several other factors. For example, transfers are not very elastic with respect to parental income.

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Paper provided by Institute for Fiscal Studies in its series IFS Working Papers with number W96/03.

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Date of creation: Jan 1996
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Handle: RePEc:ifs:ifsewp:96/03
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  1. repec:sae:niesru:v:148:y::i:1:p:73-97 is not listed on IDEAS
  2. Blundell, Richard W & Smith, Richard J, 1989. "Estimation in a Class of Simultaneous Equation Limited Dependent Variable Models," Review of Economic Studies, Wiley Blackwell, vol. 56(1), pages 37-57, January.
  3. John Micklewright & Najma Rajah & Stephen Smith, 1994. "Labouring and Learning: Part-Time Work and Full-Time Education," National Institute Economic Review, National Institute of Economic and Social Research, vol. 148(1), pages 73-97, May.
  4. Michael, Robert T & Tuma, Nancy Brandon, 1984. "Youth Employment: Does Life Begin at 16?," Journal of Labor Economics, University of Chicago Press, vol. 2(4), pages 464-76, October.
  5. Becker, Gary S, 1981. "Altruism in the Family and Selfishness in the Market Place," Economica, London School of Economics and Political Science, vol. 48(189), pages 1-15, February.
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