Corresponding author: Bernard Fortin, Economics Department, Laval University, Quebec City, Province of Quebec, Canada, G1V 0A6. Email: email@example.com.
Are Children Decision-Makers within the Household?*
Article first published online: 21 JAN 2011
© 2011 The Author(s). The Economic Journal © 2011 Royal Economic Society
The Economic Journal
Volume 121, Issue 553, pages 871–903, June 2011
How to Cite
Dauphin, A., El Lahga, A.-R., Fortin, B. and Lacroix, G. (2011), Are Children Decision-Makers within the Household?. The Economic Journal, 121: 871–903. doi: 10.1111/j.1468-0297.2010.02404.x
We are grateful to the Central Statistical Office for granting us access to the British Family Expenditure Survey. We also thank the Centre Interuniversitaire sur le Risque, les Politiques Économiques et l'Emploi (CIRPÉE), the Canada Chair of Research in the Economics of Social Policies and Human Resources, and the Consejo Superior de Investigacion Cientifico de España for their financial assistance. This article was partly written while Lacroix was a visiting professor at the Institut de Anàlisi Econòmica in Barcelona and while Fortin was a visiting researcher at the Université de Paris 1 Panthéon-Sorbonne. We are also indebted to Eugene Choo, Olivier Donni, Nicolas Jacquemet, Costas Meghir, Arthur van Soest and especially the editor Jörn-Steffen Pischke and two anonymous referees, for their detailed and informative comments on a previous version. We also benefited from useful discussions with Georges Bresson, Martin Browning, Pierre-André Chiappori, Hélène Couprie, Frank Kleibergen, Chris Flinn, Jean-Marc Robin and Frances Woolley.
- Issue published online: 2 JUN 2011
- Article first published online: 21 JAN 2011
- Submitted: 22 September 2008 Accepted: 26 July 2010
This article seeks to determine whether children aged 16 and over and who are living with their parents influence the household decision-making process. Assuming collective rationality within the household, we show how a minimal number of decision-makers can be inferred from the parametric constraints of the collective model. Using UK Family Expenditure Surveys, we find the data to be consistent with the children being decision-makers. When stratifying the sample by age and by gender, our results indicate that both children aged between 16 and 21 and daughters, irrespective of their age, are decision-makers. Results for sons and children age 22 and over are less conclusive. Finally, the collective model is never rejected.