Intra-household transfers and the part-time work of children

Christian Dustmann, John Micklewright () and Najma Rajah
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Najma Rajah: Institute for Fiscal Studies

No W96/03, IFS Working Papers from Institute for Fiscal Studies

Abstract: We analyse labour supply of 16 year old British children together with the cash transfers made to them by their parents. We develop a theoretical framework with an altruistic parent and a selfish child, which serves as the basis for the empirical specification in which labour supply and transfers are jointly determined. We estimate various specifications of the econometric model. Our results confirm that parental transfers and the child's labour supply are heavily dependent on each other and also show the influence of several other factors. For example, transfers are not very elastic with respect to parental income.

Date: 1996-01-01
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Related works:
Working Paper: Intra-Household Transfers and the Part-Time Work of Children (2001)
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