Collective Labor Supply and Child Care Expenditures: Theory and Application

In this study we examine the collective labor supply choices of dual-earner parents and take into account child care expenditures. For this purpose we use data of the Flemish Families and Care Survey (FFCS, 2004–2005). The main findings are, firstly, that the supply of paid labor is hardly affected...

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Bibliographic Details
Published inJournal of labor research Vol. 33; no. 2; pp. 196 - 224
Main Authors Van Klaveren, Chris, Ghysels, Joris
Format Journal Article
LanguageEnglish
Published Boston Springer US 01.06.2012
Springer Nature B.V
Subjects
Appropriations and expenditures
Bargaining
Belgium
Child care
Children & youth
Consumption
Decision making
Earnings
Employment
Expenditures
Families & family life
Family
Household economics
Households
Income
Labor
Labor policy
Labor supply
Labour supply
Leisure
Parents
Parents & parenting
Prices
Social Sciences
Studies
Surveys
Utility functions
Wage determination
Wages & salaries
Women
Working mothers
Netherlands
Collective model
Labor supply
J22
D12
Child care
D13
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Summary:In this study we examine the collective labor supply choices of dual-earner parents and take into account child care expenditures. For this purpose we use data of the Flemish Families and Care Survey (FFCS, 2004–2005). The main findings are, firstly, that the supply of paid labor is hardly affected by changes in the prices of child care services. Secondly, child care price effects on the individual labor supplies are much smaller than the wage effects. Thirdly, we find that additional earnings due to an increase in household non-labor income minus the child care expenditures are mainly transferred to the wife.
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ISSN:0195-3613
1936-4768
DOI:10.1007/s12122-011-9127-4