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Socio-Economic Review 2:315-339 (2004)
© Oxford University Press and the Society for the Advancement of Socio-Economics 2004. All rights reserved.

Income packages of households with children: a cross-national correlation analysis

Erin Todd Bronchetti1 and Dennis H. Sullivan2

1 Northwestern University, Evanston, IL 60208, and 2 Miami University, Oxford, OH 45056, USA

Correspondence: sullivdh{at}muohio.edu

This paper presents stylized facts about household disposable income and its components (the ‘income package’) in ten OECD countries, using data from the Luxembourg Income Study database for the period 1994–2000. The research design is an extension of the design in Todd and Sullivan (2002). Cross-national correlations reveal that there are systematic differences among nations in the relationship between the number and age of children in a household and the relative level of household disposable income after controlling for the ages of the parents and youngest child. We find that cross-national differences in relative disposable income are determined largely by differences in the effect of children on household earnings, particularly women's earnings.

Key Words: JEL classification: C810 Methodology for Collecting, Estimating, and Organizing Microeconomic Data, D190 Household Behavior and Family Economics: Other


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