Child Expenditure: The Role of Working Mothers, Lone Parents, Sibling Composition and Household Provision

30 Pages Posted: 5 Nov 2001

See all articles by Lisa Farrell

Lisa Farrell

University College Dublin (UCD)

Michael A. Shields

University of Melbourne - Department of Economics; IZA Institute of Labor Economics

Date Written: November 2001

Abstract

This paper uses detailed diary information from the British Family Expenditure Survey (FES)to investigate the expenditure patterns of school-age children. We estimate a Quadratic Almost Ideal Demand System, and find that, whilst most commodities are normal goods, sweets and toys are luxury items for children. Children of lone parents have lower budget shares for expenditure on soft drinks, leisure, personal goods and books/magazines, but higher budget shares for expenditure on sweets and vice products (alcohol, cigarettes and gambling). Having a working mother increases child expenditure on food products and toys. A higher parental budget share, on any given commodity, is generally associated with an increased child budget share suggesting that children mimic their parent's expenditure patterns.

Keywords: Child Expenditure, Quadratic Almost Ideal Demand System, Lone Parents, Working Mothers, Sibling Composition

JEL Classification: D11, D12, J13

Suggested Citation

Farrell, Lisa and Shields, Michael A., Child Expenditure: The Role of Working Mothers, Lone Parents, Sibling Composition and Household Provision (November 2001). Available at SSRN: https://ssrn.com/abstract=289101 or http://dx.doi.org/10.2139/ssrn.289101

Lisa Farrell

University College Dublin (UCD) ( email )

Belfield
Belfield, Dublin 4 4
Ireland

Michael A. Shields (Contact Author)

University of Melbourne - Department of Economics ( email )

Victoria 3010, 3010
Australia
+61 3 8344 4656 (Phone)
+61 3 8344 6899 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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