Working Paper: CEPR ID: DP12550
Authors: Paula Gobbi
Abstract: This paper proposes a semi-cooperative marital decision process to explain parental underinvestment in childcare. First, parents collectively choose the amount of labor to supply and, in a second step, they each choose the amount of childcare as the outcome of a Cournot game.Non-cooperative behavior stems from the lack of a credible commitment between spouses regarding the amount of childcare they each supply. The theoretical model is able to reproduce that parental time with children increases both with an individual's education and with that of his/her partner. The limited commitment problem leads to an underinvestment in childcare and, hence, child quality: compared to the efficient provision of childcare, the semi-cooperative framework leads to an amount of child quality that is 45% lower.
Keywords: time use; childcare; education; semicooperative model; structural estimation
JEL Codes: J11; J13; J16; O11
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| limited commitment (D10) | underinvestment in childcare (J13) |
| education levels of both parents (I24) | parental time with children (J12) |
| parental time with children (J12) | child quality (J13) |
| cooperative behavior (C71) | increase in childcare (J13) |
| underinvestment in childcare (J13) | child quality (J13) |