Efficient Intra-Household Allocation of Parental Leave
We propose a model of how parents resolve conflicts about sharing the negative short and long-term consequences from parenthood-related career interruptions on earnings. We introduce childcare sharing in a collective model of household behavior with public consumption as in Blundell, Chiappori, and Meghier (2005). Conceptually, the solution to the household problem can be thought of as a two-stage process: Parents first agree on public expenditures on professional childcare; then, conditional on the level of public consumption and the budget constraint stemming from stage one, parents determine their individual job absence durations and private consumption shares. Using relative income measures from German parental benefit data as distribution factors, we find evidence for Pareto efficiency in childcare sharing. More precisely, households with higher total incomes purchase more professional childcare, and changes in distribution factors shift the conditional parental leave allocation in favor of the partner whose relative income increased.
|Date of creation:||Aug 2010|
|Date of revision:|
|Contact details of provider:|| Postal: |
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|
References listed on IDEAS
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.:
- Ekberg, John & Eriksson, Rickard & Friebel, Guido, 2005.
"Parental Leave – A Policy Evaluation of the Swedish "Daddy-Month" Reform,"
IZA Discussion Papers
1617, Institute for the Study of Labor (IZA).
- Ekberg, John & Eriksson, Rickard & Friebel, Guido, 2013. "Parental leave — A policy evaluation of the Swedish “Daddy-Month” reform," Journal of Public Economics, Elsevier, vol. 97(C), pages 131-143.
- Richard Blundell & Pierre-Andr� Chiappori & Costas Meghir, 2005.
"Collective Labor Supply with Children,"
Journal of Political Economy,
University of Chicago Press, vol. 113(6), pages 1277-1306, December.
- Leslie E. Papke & Jeffrey M. Wooldridge, 1993.
"Econometric Methods for Fractional Response Variables with an Application to 401(k) Plan Participation Rates,"
NBER Technical Working Papers
0147, National Bureau of Economic Research, Inc.
- Papke, Leslie E & Wooldridge, Jeffrey M, 1996. "Econometric Methods for Fractional Response Variables with an Application to 401(K) Plan Participation Rates," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(6), pages 619-32, Nov.-Dec..
- Pierre-Andre Chiappori & Bernard Fortin & Guy Lacroix, 2002.
"Marriage Market, Divorce Legislation, and Household Labor Supply,"
Journal of Political Economy,
University of Chicago Press, vol. 110(1), pages 37-72, February.
- Pierre-André Chiappori & Bernard Fortin & Guy Lacroix, 2001. "Marriage Market, Divorce Legislation and Household Labor Supply," CIRANO Working Papers 2001s-16, CIRANO.
- Chiappori, Pierre-André & Fortin, Bernard & Lacroix, Guy, 2001. "Marriage Market, Divorce Legislation and Household Labor Supply," Cahiers de recherche 0103, Université Laval - Département d'économique.
- Fran�ois Bourguignon & Martin Browning & Pierre-André Chiappori, 2009.
"Efficient Intra-Household Allocations and Distribution Factors: Implications and Identification,"
Review of Economic Studies,
Oxford University Press, vol. 76(2), pages 503-528.
- François Bourguignon & Martin Browning & Pierre-André Chiappori, 2006. "Efficient Intra-household Allocations and Distribution Factors: Implications and Identification," CAM Working Papers 2006-02, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
- repec:bla:restud:v:76:y:2009:i:2:p:503-528 is not listed on IDEAS
- Jacob Mincer & Solomon Polachek, 1974.
"Family Investments in Human Capital: Earnings of Women,"
in: Marriage, Family, Human Capital, and Fertility, pages 76-110
National Bureau of Economic Research, Inc.
- Mincer, Jacob & Polachek, Solomon, 1974. "Family Investment in Human Capital: Earnings of Women," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages S76-S108, Part II, .
- Gustavo J. Bobonis, 2009. "Is the Allocation of Resources within the Household Efficient? New Evidence from a Randomized Experiment," Journal of Political Economy, University of Chicago Press, vol. 117(3), pages 453-503, 06.
- Sarah Jarvis & Stephen P. Jenkins, 1997. "Marital Splits and Income Changes: Evidence for Britain," Papers iopeps97/26, Innocenti Occasional Papers, Economic Policy Series.
- Apps, Patricia F. & Rees, Ray, 1988. "Taxation and the household," Journal of Public Economics, Elsevier, vol. 35(3), pages 355-369, April.
- AndrÃ©s Erosa & Luisa Fuster & Diego Restuccia, 2002. "Fertility Decisions and Gender Differences in Labor Turnover, Employment, and Wages," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 5(4), pages 856-891, October.
When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp5113. 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.