DP2796 Intra-Household Transfers and the Part-Time Work of Children

Author(s): Christian Dustmann, John Micklewright
Publication Date: May 2001
Keyword(s): Child Labour Supply, Intra-Household Transfers
JEL(s): C35, C70, J22
Programme Areas: Labour Economics
Link to this Page: www.cepr.org/active/publications/discussion_papers/dp.php?dpno=2796

We analyse the labour supply of 16-year-old British children together with the cash transfers made to them by their parents. We develop a theoretical model with an altruistic parent and a selfish child, which serves as a basis for the empirical specification in which labour supply and transfers are jointly determined. We show how parental transfers and the child’s labour supply are dependent on each other. Consideration of this is important when assessing the influence of other factors.