Research

Raising juveniles


Reference:

Bell, C., Gersbach, H. and Schneider, M., 2012. Raising juveniles. Games and Economic Behavior, 74 (1), pp. 32-51.

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    Official URL:

    http://dx.doi.org/10.1016/j.geb.2011.06.010

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    Abstract

    This paper investigates how families decide how juveniles use their time. The problem is analyzed in three variations: (i) a ‘decentralized’ scheme, in which parents control the main budget, but their children dispose of their time as they see fit, together with any earnings from work on their own account; (ii) ‘hierarchy’, in which parents can enforce, at some cost, particular levels of schooling and supervised work contributing to the main budget; and (iii) the cooperative solution, in which resources are pooled and the threat point is one of the non-cooperative outcomes. Adults choose which game is played. While the subgame perfect equilibrium of the overall game is Pareto-efficient, it may yield less education than ‘hierarchy’. Restrictions on child labor and compulsory schooling generally affect both the threat point and the feasible set of bargaining outcomes. Families may choose more schooling than the legal minimum.

    Details

    Item Type Articles
    CreatorsBell, C., Gersbach, H. and Schneider, M.
    DOI10.1016/j.geb.2011.06.010
    Related URLs
    URLURL Type
    http://www.sciencedirect.com/science/article/pii/S0899825611001096Publisher
    Uncontrolled Keywordsfamily decision-making,human capital,bargaining,youth,economics and econometrics
    DepartmentsFaculty of Humanities & Social Sciences > Economics
    RefereedYes
    StatusPublished
    ID Code43345

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