Arbeitspapier
Do Parents Tax Their Children? Teenage Labour Supply and Financial Support
This paper models child employment and parental pocket money decisions as a non-cooperative game. Assuming that the child human capital is a household public good and that the relationship between child human capital and employment is concave, we compare the welfare obtained under different decision-making mechanisms and test the predictions of the model for a cohort of English teenagers in compulsory education. Our results support a situation in which parents 'tax' their children's earnings, withdrawing financial support as the child increases his working hours. This strategy forces the child to internalise the social cost of his activities.
- Sprache
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Englisch
- Erschienen in
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Series: IZA Discussion Papers ; No. 10040
- Klassifikation
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Wirtschaft
Model Evaluation, Validation, and Selection
Noncooperative Games
Household Production and Intrahousehold Allocation
Time Allocation and Labor Supply
- Thema
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intra-household transfers
pocket money
child labour supply
noncooperative game
human capital
- Ereignis
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Geistige Schöpfung
- (wer)
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Holford, Angus J.
- Ereignis
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Veröffentlichung
- (wer)
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Institute for the Study of Labor (IZA)
- (wo)
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Bonn
- (wann)
-
2016
- Handle
- Letzte Aktualisierung
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10.03.2025, 11:43 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Holford, Angus J.
- Institute for the Study of Labor (IZA)
Entstanden
- 2016