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Who Bears the Full Costs of Children?

Author

Listed:
  • Antonella Caiumi

    () (ISAE)

  • Federico Perali

    () (Department of Economics (University of Verona))

Abstract

This paper measures how the costs of children are shared between the father and the mother by estimating a gender specific demand system related to the demand for market goods, household products and leisure within a collective approach. The estimates illustrate how the intra-household distribution of resources varies across households with and without children and how wages and non-labor income affect the allocation rule in both one-earner and double-earner households. In the presence of a child, both parents, but mothers especially, increase their involvement in home production at the expense of the enjoyment of leisure. This commitment decreases as the child gets older. In general, mothers control less than half of the household resources, while they bear more than half of the cost of maintaining a child.

Suggested Citation

  • Antonella Caiumi & Federico Perali, 2010. "Who Bears the Full Costs of Children?," Working Papers 01/2010, University of Verona, Department of Economics.
  • Handle: RePEc:ver:wpaper:01/2010
    as

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    File URL: http://dse.univr.it//workingpapers/2010WP01SharingCostOfChildren.pdf
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    References listed on IDEAS

    as
    1. Martin Browning & Jens Bonke, 2006. "Allocation within the household: direct survey evidence," Economics Series Working Papers 286, University of Oxford, Department of Economics.
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    Cited by:

    1. Martina Menon & Federico Perali & Luca Piccoli, 2012. "The Passive Drinking Effect: A Collective Demand Application," Working Papers 05/2012, University of Verona, Department of Economics.
    2. Martina Menon & Federico Perali, 2012. "The Sharing Rule: Where Is It?," Working Papers 16/2012, University of Verona, Department of Economics.

    More about this item

    Keywords

    cost of children; collective demand system; intra-household allocation; household production; full income; sharing rule;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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