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This paper studies the design of couples' income taxation. Consumption and labor supply decisions within the couple are made by maximizing a weighted sum of the spouses’ utilities; bargaining weights are given but specific to each couple. The information structure and labor supply decisions...
Persistent link: https://www.econbiz.de/10010479336
We present a simple dynamic model based on on-the-job human capital accumulation affecting the dynamic of wage rates and labor earnings. We show how these dynamics are determined by the interplay between the supply and demand sides of the labor market. The model can generate and explain the...
Persistent link: https://www.econbiz.de/10014251960
scenario concerning the "harmony" of family relations. Children are purely selfish, and neither side can make credible …
Persistent link: https://www.econbiz.de/10009786034
care provided to their parents and education expenditures for their children. The young enjoy their education, while the … old may leave a bequest to their children. Within each period the three generations play a "game" inspired by Becker … period and that parents invest in the education of their children. We show that Becker's rotten kids theorem holds for the …
Persistent link: https://www.econbiz.de/10010370317
We study the role and design of private and public insurance programs when informal care is uncertain. Children …
Persistent link: https://www.econbiz.de/10011587909
while children’s altruism is not. The traditional topping up and opting out policies are special cases of ours. Both total … and informal care should increase with the children's level of altruism. This obtains under full and asymmetric … explained by the need to provide incentives to high-altruism children. The implementing contract is always such that social care …
Persistent link: https://www.econbiz.de/10011867926