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The measurement of child costs : evidence from Ireland

Author

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  • Olivier Bargain
  • Monnet Gbakou
  • Olivier Donni

Abstract

We apply an extension of the Rothbarth approach to estimate the share of household resources accruing to children (i.e., the cost of children) in Ireland. The method also allows us to identify the economies of scale in the household and indifference scales in Lewbel (2003)'s sense. A practical aspect of the present approach is that it does not require price variation. The identi?cation of the children's share requires the observation of adult-speci?c goods as in the traditional Rothbarth method. We compare our fi?ndings to previous results for Ireland.

Suggested Citation

  • Olivier Bargain & Monnet Gbakou & Olivier Donni, 2010. "The measurement of child costs : evidence from Ireland," Working Papers 201002, School of Economics, University College Dublin.
  • Handle: RePEc:ucn:wpaper:201002
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    File URL: http://hdl.handle.net/10197/2631
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    References listed on IDEAS

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    1. Martin Browning & Pierre-André Chiappori & Arthur Lewbel, 2013. "Estimating Consumption Economies of Scale, Adult Equivalence Scales, and Household Bargaining Power," Review of Economic Studies, Oxford University Press, vol. 80(4), pages 1267-1303.
    2. John Micklewright, 2003. "Child Poverty in English-Speaking Countries," Papers inwopa03/25, Innocenti Working Papers, revised 2003.
    3. Bargain, Olivier & Donni, Olivier, 2009. "The Measurement of Child Costs: A Rothbarth-Type Method Consistent with Scale Economies," IZA Discussion Papers 4654, Institute for the Study of Labor (IZA).
    4. Lazear, Edward P. & Michael, Robert T., 1988. "Allocation of Income within the Household," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226469669, April.
    5. Conniffe, Denis & Keogh, Gary, 1988. "Equivalence Scales and Costs of Children," Research Series, Economic and Social Research Institute (ESRI), number GRS142.
    6. Barrett, Alan & Coleman, Kieran & Delaney, Liam & Fahey, Tony & Gannon, Brenda & Kearney, Ide & McCarthy, Yvonne & Nolan, Brian & Walsh, John R., 2006. "Budget Perspectives 2007," Research Series, Economic and Social Research Institute (ESRI), number BMI192 edited by Callan, Tim.
    7. Richard Blundell & Jean-Marc Robin, 2000. "Latent Separability: Grouping Goods without Weak Separability," Econometrica, Econometric Society, vol. 68(1), pages 53-84, January.
    8. Browning, Martin, 1992. "Children and Household Economic Behavior," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1434-1475, September.
    9. Gronau, Reuben, 1991. "The Intrafamily Allocation of Goods--How to Separate the Adult from the Child," Journal of Labor Economics, University of Chicago Press, vol. 9(3), pages 207-235, July.
    10. Sara Cantillon & Brian Nolan, 2001. "Poverty Within Households: Measuring Gender Differences Using Nonmonetary Indicators," Feminist Economics, Taylor & Francis Journals, vol. 7(1), pages 5-23.
    11. Blundell, Richard & Robin, Jean Marc, 1999. "Estimation in Large and Disaggregated Demand Systems: An Estimator for Conditionally Linear Systems," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 14(3), pages 209-232, May-June.
    12. Richard Blundell & Pierre-André Chiappori & Costas Meghir, 2005. "Collective Labor Supply with Children," Journal of Political Economy, University of Chicago Press, vol. 113(6), pages 1277-1306, December.
    13. James Banks & Richard Blundell & Arthur Lewbel, 1997. "Quadratic Engel Curves And Consumer Demand," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 527-539, November.
    14. Lewbel, Arthur, 2003. "Calculating compensation in cases of wrongful death," Journal of Econometrics, Elsevier, vol. 113(1), pages 115-128, March.
    15. Lewbel, Arthur & Pendakur, Krishna, 2008. "Estimation of collective household models with Engel curves," Journal of Econometrics, Elsevier, vol. 147(2), pages 350-358, December.
    16. Denis Conniffe & Brian Nolan & Christopher T. Whelan, 1999. "Household Composition, Living Standards, and "Needs"," Papers WP106, Economic and Social Research Institute (ESRI).
    17. Shelly J. Lundberg & Robert A. Pollak & Terence J. Wales, 1997. "Do Husbands and Wives Pool Their Resources? Evidence from the United Kingdom Child Benefit," Journal of Human Resources, University of Wisconsin Press, vol. 32(3), pages 463-480.
    18. Conniffe, Denis, 1992. "The Non-constancy of Equivalence Scales," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 38(4), pages 429-443, December.
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    Citations

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    Cited by:

    1. Olivier Bargain & Prudence Kwenda & Miracle Ntuli, 2017. "Gender bias and the intrahousehold distribution of resources: Evidence from African nuclear households in South Africa," WIDER Working Paper Series 071, World Institute for Development Economic Research (UNU-WIDER).
    2. Bargain, Olivier & Donni, Olivier & Kwenda, Prudence, 2014. "Intrahousehold distribution and poverty: Evidence from Côte d'Ivoire," Journal of Development Economics, Elsevier, vol. 107(C), pages 262-276.
    3. Bargain, Olivier & Donni, Olivier, 2009. "The Measurement of Child Costs: A Rothbarth-Type Method Consistent with Scale Economies," IZA Discussion Papers 4654, Institute for the Study of Labor (IZA).
    4. Bargain, Olivier & Donni, Olivier, 2012. "Expenditure on children: A Rothbarth-type method consistent with scale economies and parents' bargaining," European Economic Review, Elsevier, vol. 56(4), pages 792-813.
    5. Menon, Martina & Pendakur, Krishna & Perali, Federico, 2012. "On the expenditure-dependence of children’s resource shares," Economics Letters, Elsevier, vol. 117(3), pages 739-742.
    6. Jason Loughrey & Cathal O’Donoghue, 2012. "The Welfare Impact of Price Changes on Household Welfare and Inequality 1999-2011," The Economic and Social Review, Economic and Social Studies, vol. 43(1), pages 31-66.
    7. HORI Masahiro, 2011. "The expenditure on children in Japan," ESRI Discussion paper series 279, Economic and Social Research Institute (ESRI).
    8. BARGAIN Olivier & DONNI Olivier, 2010. "The Measurement of Child Costs: A Rothbarth-Type Method Consistent with Scale Economies and Parents? Bargaining," LISER Working Paper Series 2010-30, LISER.

    More about this item

    Keywords

    Consumer demand; Collective model; Sharing rule; Cost of children; Equivalence scales; Indifference scales; Home economics--Accounting; Child rearing--Economic aspects--Ireland; Consumption (Economics);

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure

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