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The Effects of Children on Household Income Packages: A Cross-National Analysis

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  • Erin Todd
  • Dennis Sullivan

Abstract

This paper presents stylized facts about the effect of children on household disposable income and its components (the ""income package"") in nine OECD countries, employing data from the Luxembourg Income Study database. We find that cross-national differences in the impact of children on household disposable income are substantial and systematic. Speaking generally, we find that cross-national differences in the impact of children on disposable income are determined largely by the differences in the impact of children on household earnings, particularly womens earnings. We also find that countries with a generous fiscal treatment of households with children are also countries in which the effect of children on earnings is most negative.

Suggested Citation

  • Erin Todd & Dennis Sullivan, 2001. "The Effects of Children on Household Income Packages: A Cross-National Analysis," LIS Working papers 257, LIS Cross-National Data Center in Luxembourg.
    • Handle: RePEc:lis:liswps:257
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    References listed on IDEAS

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    1. Harkness, Susan & Waldfogel, Jane, 1999. "The family gap in pay," LSE Research Online Documents on Economics 51396, London School of Economics and Political Science, LSE Library.
    2. Shelley Phipps, 1999. "What is the Best Mix of Policies for Canadas Children?: An International Comparison of Policies and Outcomes for Young Children," LIS Working papers 201, LIS Cross-National Data Center in Luxembourg.
    3. Bardasi, Elena & C. Gornick, Janet, 2000. "Women and part-time employment: workers’ ‘choices’ and wage penalties in five industrialized countries," ISER Working Paper Series 2000-11, Institute for Social and Economic Research.
    4. Millimet, Daniel L, 2000. "The Impact of Children on Wages, Job Tenure, and the Division of Household Labour," Economic Journal, Royal Economic Society, vol. 110(462), pages 139-157, March.
    5. Jane Waldfogel & Susan Harkness, 1999. "The Family Gap in Pay: Evidence from Seven Industrialized Countries," LIS Working papers 219, LIS Cross-National Data Center in Luxembourg.
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    Cited by:

    1. John Posey, 2008. "Family Gap Structures in Western Nations," LIS Working papers 490, LIS Cross-National Data Center in Luxembourg.
    2. Harkness, Susan, 2022. "The accumulation of disadvantage: how motherhood and relationship breakdown influence married and single mothers’ economic outcomes," ISER Working Paper Series 2022-03, Institute for Social and Economic Research.

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