By Christina Jonung, Inga Persson
Fiscal research of the relations is a contemporary, yet already good tested region in economics. This ebook bears proof to the energetic and proper learn within the sector. Essays during this entire assortment offer a transparent photo of the cutting-edge of economics of the relations and discover theoretical and empirical functions. The individuals additional examine tax, public baby care and parental depart rules by way of the incentives they bring about for labour provide, time allocation, human capital accumulation and the alternative of ways to arrange baby care. This quantity additionally attracts on adventure from the Nordic nations, well known for his or her adventure with kinfolk and gender equality guidelines.
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Extra info for Economics of the Family and Family Policies
The first approach, in ascendancy from the 1950s until the 1980s, was the common preference approach—treating the family as though it were a single decision-making agent, with a single pooled budget constraint and a single utility function that includes the consumption and leisure time of every family member. The second approach, pioneered by Manser-Brown and McElroy-Horney in the early 1980s, was to model family demands as the solution to a bargaining game. Most bargaining models of family behavior allow two decision-makers—the husband and the wife.
Game-theoretic approaches to family behavior provide new models, yield new results and provoke new questions. Novel questions and areas of inquiry are numerous, but three that seem particularly interesting to us are the effect of control of resources by husbands and wives on the well-being of children, the effect of social norms on marital bargaining, and the relationship between marital distribution and marriage markets. Policies that empower women have been supported not only by claims that they will increase the wellbeing of women and reduce birth rates, but also by claims that they will increase the well-being of children.
Thus the interpretation of the separate effects of wife’s earnings and husband’s earnings is problematic. Consider the finding of Phipps and Burton (1992) that expenditures on restaurant meals are more elastic with respect to the wife’s earnings than the husband’s earnings. A bargaining interpretation of this result is that, as the wife’s earnings rise relative to the husband’s, she gains more influence over the household’s spending patterns and that increased expenditures on restaurant meals reflect her preferences.
Economics of the Family and Family Policies by Christina Jonung, Inga Persson