In-school labour supply, parental transfers, and wages

C. Dustmann, J. Micklewright, A.H.O. van Soest

Research output: Contribution to journalArticleScientificpeer-review

Abstract

In many industrialised countries, teenagers have a significant spending power, and they are important customers for specialised industries. The income of teenagers still in full time education comes from two major sources: parental pocket money and earnings from part-time jobs. Little is known about the way these sources interact, and how they depend on parental, school and family characteristics. In this paper, we analyse labour supply of 16 year old British teenagers together with the cash transfers made to them by their parents. We first develop a theoretical model, where labour supply and transfers are jointly determined. We then estimate labour supply and transfers jointly, using unique data on labour supply of teenagers, the wages they receive, and the transfers from their parents. We show how these two processes depend on each other, and how transfers and labour supply react to changes in wages.
Original languageEnglish
Pages (from-to)201-218
JournalEmpirical Economics: A quarterly journal of the Institute for Advanced Studies
Volume37
Issue number1
Publication statusPublished - 2009

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Labor Supply
labor supply
Wages
wage
school
pocket money
parents
Theoretical Model
customer
Customers
Labor supply
Industry
income
Teenagers
industry
Estimate
education

Cite this

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title = "In-school labour supply, parental transfers, and wages",
abstract = "In many industrialised countries, teenagers have a significant spending power, and they are important customers for specialised industries. The income of teenagers still in full time education comes from two major sources: parental pocket money and earnings from part-time jobs. Little is known about the way these sources interact, and how they depend on parental, school and family characteristics. In this paper, we analyse labour supply of 16 year old British teenagers together with the cash transfers made to them by their parents. We first develop a theoretical model, where labour supply and transfers are jointly determined. We then estimate labour supply and transfers jointly, using unique data on labour supply of teenagers, the wages they receive, and the transfers from their parents. We show how these two processes depend on each other, and how transfers and labour supply react to changes in wages.",
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In-school labour supply, parental transfers, and wages. / Dustmann, C.; Micklewright, J.; van Soest, A.H.O.

In: Empirical Economics: A quarterly journal of the Institute for Advanced Studies, Vol. 37, No. 1, 2009, p. 201-218.

Research output: Contribution to journalArticleScientificpeer-review

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AU - van Soest, A.H.O.

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