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Journal of Labor Research

, Volume 33, Issue 2, pp 196–224 | Cite as

Collective Labor Supply and Child Care Expenditures: Theory and Application

  • Chris Van KlaverenEmail author
  • Joris Ghysels
Article

Abstract

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.

Keywords

Collective model Labor supply Child care 

JEL Classification

D12 D13 J22 

Notes

Acknowledgements

We are grateful to Pierre-André Chiappori, the editor and one anonymous referee for their helpful comments.

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Copyright information

© Springer Science+Business Media, LLC 2011

Authors and Affiliations

  1. 1.Faculty of Humanities and Science (TIER)Maastricht UniversityMaastrichtThe Netherlands

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