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Child Expenditure: The Role of Working Mothers, Lone Parents, Sibling Composition and Household Provision

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  • Farrell, Lisa

    (affiliation not available)

  • Shields, Michael A.

    () (Monash University)

Abstract

This paper uses detailed diary information from the British Family Expenditure Survey (FES) to investigate the expenditure patterns of school-age children. We estimate a Quadratic Almost Ideal Demand System, and find that, whilst most commodities are normal goods, sweets and toys are luxury items for children. Children of lone parents have lower budget shares for expenditure on soft drinks, leisure, personal goods and books/magazines, but higher budget shares for expenditure on sweets and vice products (alcohol, cigarettes and gambling). Having a working mother increases child expenditure on food products and toys. A higher parental budget share, on any given commodity, is generally associated with an increased child budget share suggesting that children mimic their parent’s expenditure patterns.

Suggested Citation

  • Farrell, Lisa & Shields, Michael A., 2001. "Child Expenditure: The Role of Working Mothers, Lone Parents, Sibling Composition and Household Provision," IZA Discussion Papers 388, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp388
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    References listed on IDEAS

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    1. Basu, Kaushik & Van, Pham Hoang, 1998. "The Economics of Child Labor," American Economic Review, American Economic Association, vol. 88(3), pages 412-427, June.
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    More about this item

    Keywords

    lone parents; quadratic almost ideal demand system; Child expenditure; working mothers; sibling composition;

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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