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

Author

Listed:
  • Christian Dustmann

    (Institute for Fiscal Studies and University College London)

  • John Micklewright

    (Institute for Fiscal Studies and Institute of Education)

  • Najma Rajah

    (Institute for Fiscal Studies)

Abstract

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.

Suggested Citation

  • Christian Dustmann & John Micklewright & Najma Rajah, 1996. "Intra-household transfers and the part-time work of children," IFS Working Papers W96/03, Institute for Fiscal Studies.
    • Handle: RePEc:ifs:ifsewp:96/03
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    References listed on IDEAS

    as
    1. 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.
    2. repec:sae:niesru:v:148:y::i:1:p:73-97 is not listed on IDEAS
    3. 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.
    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 464-476, October.
    5. Hendrik JØrges, 2000. "Of rotten kids and Rawlsian parents: The optimal timing of intergenerational transfers," Journal of Population Economics, Springer;European Society for Population Economics, vol. 13(1), pages 147-157.
    6. Richard W. Blundell & Richard J. Smith, 1989. "Estimation in a Class of Simultaneous Equation Limited Dependent Variable Models," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 56(1), pages 37-57.
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    Citations

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    Cited by:

    1. Sabrina Wulff Pabilonia, 2001. "Evidence on Youth Employment, Earnings, and Parental Transfers in the National Longitudinal Survey of Youth 1997," Journal of Human Resources, University of Wisconsin Press, vol. 36(4), pages 795-822.
    2. Christian Dustmann & John Mickelwright & Najma Rajah & Stephen Smith, 1996. "Earning and learning: educational policy and the growth of part-time work by full-time pupils," Fiscal Studies, Institute for Fiscal Studies, vol. 17(1), pages 79-103, February.
    3. Amy Peng & Ling Yang, 2009. "The Decision of Work and Study and Employment Outcomes," Working Papers 014, Ryerson University, Department of Economics.
    4. Ana Fernandes, 2011. "Altruism, labor supply and redistributive neutrality," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(4), pages 1443-1469, October.
    5. Massimiliano Bratti, 2007. "Parents’ income and children’s school drop-out at 16 in England and Wales: evidence from the 1970 British Cohort Study," Review of Economics of the Household, Springer, vol. 5(1), pages 15-40, March.
    6. Anne Laferrère, 1998. "Devenir travailleur indépendant," Économie et Statistique, Programme National Persée, vol. 319(1), pages 13-28.
    7. Charlene Kalenkoski & Sabrina Pabilonia, 2010. "Parental transfers, student achievement, and the labor supply of college students," Journal of Population Economics, Springer;European Society for Population Economics, vol. 23(2), pages 469-496, March.
    8. François-Charles Wolff, 2006. "Parental transfers and the labor supply of children," Journal of Population Economics, Springer;European Society for Population Economics, vol. 19(4), pages 853-877, October.
    9. Ligang Liu & Zhiwu Xiao & Yang Deng, 2023. "Who Does “Endowment Insurance†Support: The Elderly or Their Grown-up Children?," SAGE Open, , vol. 13(4), pages 21582440231, November.
    10. repec:ebl:ecbull:v:10:y:2003:i:1:p:1-7 is not listed on IDEAS
    11. Martina Kirchberger, 2014. "Preferences over Leisure and Consumption of Siblings and Intra-Household Allocation," Economics Series Working Papers 713, University of Oxford, Department of Economics.
    12. François-Charles Wolff & Christine Barnet-Verzat, 2008. "Pocket money and child effort at school," Economics Bulletin, AccessEcon, vol. 9(13), pages 1-10.
    13. Wolff François-Charles & Barnet-Verzat Christine, 2003. "Labor opportunities against family intergenerational exchange," Economics Bulletin, AccessEcon, vol. 10(1), pages 1-7.
    14. Holford, Angus, 2016. "Do parents tax their children? Teenage labour supply and financial support," ISER Working Paper Series 2016-05, Institute for Social and Economic Research.
    15. François-Charles Wolff & Claudine Attias-Donfut, 2007. "Les comportements de transferts intergénérationnels en Europe," Économie et Statistique, Programme National Persée, vol. 403(1), pages 117-141.
    16. Sabrina Wulff Pabilonia, 2000. "The Role of the Family in Determining Youth Employment," JCPR Working Papers 151, Northwestern University/University of Chicago Joint Center for Poverty Research.

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    More about this item

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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