In-School Work Experience, Parental Allowances, and Wages
In many industrialised countries, teenagers have a significant spending power, and they are important customers for specialised industries. The income of teenagers still in full time education comes from two major sources: parental pocket money, and earnings from part time jobs. Little is known about the way these sources interact, and how they depend on parental, school and family characteristics. In this paper, we analyse labour supply of 16 year old British teenagers together with the cash transfers made to them by their parents. We develop a theoretical model, which serves as a basis for the empirical specification in which labour supply and transfers are jointly determined. We estimate this model using unique data on labour supply of teenagers, the wages they receive, and transfers made to them by their parents. We show how these two processes depend on each other, and how transfers and labour supply react to changes in wages.
|Date of creation:||Aug 2004|
|Publication status:||published under revised title in: Empirical Economics, 2009, 37 (1), 201-218|
|Contact details of provider:|| Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany|
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
|Order Information:|| Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Christopher J. Ruhm, 1995.
"Is High School Employment Consumption or Investment?,"
NBER Working Papers
5030, National Bureau of Economic Research, Inc.
- Ruhm, Christopher J, 1997. "Is High School Employment Consumption or Investment?," Journal of Labor Economics, University of Chicago Press, vol. 15(4), pages 735-776, October.
- V. Joseph Hotz & Lixin Colin Xu & Marta Tienda & Avner Ahituv, 2002.
"Are There Returns To The Wages Of Young Men From Working While In School?,"
The Review of Economics and Statistics,
MIT Press, vol. 84(2), pages 221-236, May.
- V. Joseph Hotz & Lixin Xu & Marta Tienda & Avner Ahituv, 1999. "Are There Returns to the Wages of Young Men from Working While in School?," NBER Working Papers 7289, National Bureau of Economic Research, Inc.
- V. Joseph Hotz & Lixin Xu & Marta Tienda & Avner Ahituv, 1999. "Are There Returns to the Wages of Young Men from Working While in School?," JCPR Working Papers 101, Northwestern University/University of Chicago Joint Center for Poverty Research.
- Sonia R Bhalotra & Chris Heady, 2000.
"Child Farm Labour: Theory and Evidence,"
STICERD - Development Economics Papers - From 2008 this series has been superseded by Economic Organisation and Public Policy Discussion Papers
24, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
- 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.
- Hausman, Jerry A, 1985. "The Econometrics of Nonlinear Budget Sets," Econometrica, Econometric Society, vol. 53(6), pages 1255-1282, November.
- 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.
- Gary S. Becker, 1974.
"A Theory of Social Interactions,"
NBER Working Papers
0042, National Bureau of Economic Research, Inc.
- Richard Blundell & Thomas MaCurdy, 1998.
"Labour supply: a review of alternative approaches,"
IFS Working Papers
W98/18, Institute for Fiscal Studies.
- Light, Audrey, 2001. "In-School Work Experience and the Returns to Schooling," Journal of Labor Economics, University of Chicago Press, vol. 19(1), pages 65-93, January.
When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp1235. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak)
If references are entirely missing, you can add them using this form.