READING QUESTIONS 1.In pre-demographic transition societies are children consump
ID: 1104815 • Letter: R
Question
READING QUESTIONS
1.In pre-demographic transition societies are children consumption goods? What kind of goods are they?
2.In this paper, the decline in the value of children outside of the household affects the bargaining power that men and women face inside the household. How does Folbre argue that this process occurs—take me through it step by step.
Children as Public Goods By NANCY FOLBRE* Children tumble out of every category work based on individual optimization. This economists try to put them in. They have framework treats familial altruism, like other been described as consumer durables proastes and preferences, as exogenously given viding a flow of utility to their parents, and focuses on household responses to investment goods providing income, and changes in prices and incomes. Altruism is public goods with both positive and negative considered rare outside the family, where externalities. Children are also people, with self-interest undermines the potential for certain rights to life, liberty, and the pursuit collective action (Gary Becker, 1991) of happiness. However we categorize children, we know that the consequences of raising them are changing. Economic development tends to solidarity outside . Individuals often en An alternative approach, influenced by feminist theory, places more emphasis on self-interest within the home, and group increase their costs to parents in general, gage in forms of collective action that shape and mothers in particular. Yet the growth the social institutions that govern the distri- of transfer payments and taxation of future bution of the costs of children (Folbre, generations "socialize" many of the benefits 1994). The effects are visible not only in the of children. All citizens of the United States history of family property rights and law enjoy significant claims upon the earnings of but also in public policies with disparate future working-age adults through Socia impacts on old and young, men and women Security and public debt. But not all citizens (as well as upon groups defined by nation, race, and class). contribute equally to the care of these fu- ture adults. Individuals who devote rela Considerable evidence suggests that par tively little time or energy to child-rearing ents in the now-developed countries once enjoyed important economic benefits from Parents who derive sufficiently high non child-rearing, not only because children be pecuniary benefits from their children may gan to work at an early age, but also be not care. Increases in the private costs of cause parental control over assets such as raising children, however, are exerting family farms gave them leverage over adult tremendous economic pressure on parents, children. Restrictions on women's ability to particularly mothers. Economists need to support themselves outside of marriage low analyze the contributions of nonmarke ered the opportunity costs of children and bor to the development of human capital: as imited women's ability to exercise repro- children become increasingly public goods, ductive choice. Similar factors contribute to parenting becomes an increasingly public high fertility in many developing countries are free-riding on parental labor. service today (John Caldwell, 1982) The growth of markets for labor, as well as increased geographic mobility, has weak ened patriarchal property rights, raised the cost of children, and increased women's Much of the economic literature on fam economic independence. The imposition of lies is couched within a neoclassical frame mandatory education and laws restricting child labor has improved children's future productivity but has imposed new costs on parents. Education has become an increas- ingly important determinant of children's I. Economic Development and the Costs of Children Department of Economics, University of Mas sachusetts, Amherst, MA 01003. 86Explanation / Answer
1. Childrens are regarded as public goods in the pre-demographic transition societies. According to Folbre, as parents spend most of the cost of raising children, children become productive, tax payers in the economy along with creating positive externalities in the society.
2. It is described in this paper that over the time, the public expenditure has declined rapidly since 1960s than the expenditures on adult. Public transfer for child support has declined significantly, which has increased the incidence of poverty in the US economy. The concept of perfect selfishness or altruism has underestimated the value of unpaid labour. According to Paul Samuelson and Robert Barro, this fiscal policy can increase tax burden for the future generation. Decrease in the future disposable income of children has chances of lowering future transfers of income from children to parents. Hence, it is likely to decrease in transfer from parents to children in current period and reducing welfare of children. Now, it is the case that parents are not equally affected as mothers often invest more energy and efforts to raise the children with affection. The utility gains from future income children cannot fully compensate the act of mother. In the long run, the failure of meeting commitments of remunerating parental labour may wane the values and norms of supply of parental service. It is even seen that the incidence of divorce has increased as the values of men have shifted rapidly in comparison to the women.
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