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The Cost of Children When Children are a Choice

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  • Ugo Colombino

Abstract

The standard methods of measuring the cost of children are flawed because of the endogeneity of fertility decisions and because — even if they were exogenous — children bring (or may bring) utility to the household. This paper presents a simple structural model of household allocation of time and income to ‘children’s (quantity and quality) production’. From the estimates one can compute the cost of children as the market value of resources devoted to children. Some policy simulations illustrate the relevance of accounting for the endogeneity of children.

Suggested Citation

  • Ugo Colombino, 2000. "The Cost of Children When Children are a Choice," LABOUR, CEIS, vol. 14(1), pages 79-95, March.
    • Handle: RePEc:bla:labour:v:14:y:2000:i:1:p:79-95
    DOI: 10.1111/1467-9914.00125
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    Cited by:

    1. George Hondroyiannis, 2010. "Fertility Determinants and Economic Uncertainty: An Assessment Using European Panel Data," Journal of Family and Economic Issues, Springer, vol. 31(1), pages 33-50, March.
    2. Koichi Miyazaki, 2013. "Pay-as-you-go social security and endogenous fertility in a neoclassical growth model," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(3), pages 1233-1250, July.
    3. Apps, Patricia & Rees, Ray, 2001. "Household production, full consumption and the costs of children," Labour Economics, Elsevier, vol. 8(6), pages 621-648, December.

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