The Subjective Cost of Young Children: A European Comparison

• DOI: 10.1553/0x003ccd30
• Publication Date: 2021-10-21T07:34:48Z
• Authors: Sonja Spitzer; Angela Greulich; Bernhard Hammer
• Keywords: 504006 Demography; 330; subjective economic wellbeing; ddc:300; 502021 Microeconomics; 502002 Arbeitsmarkttheorie; subjective economic well-being; 502002 Labour economics; 0502 economics and business; 502021 Mikroökonomie; Subjective economic well-being; mediation analysis; [SHS.ECO] Humanities and Social Sciences/Economics and Finance; 509013 Sozialstatistik; 504006 Demographie; cost of children; 05 social sciences; 1. No poverty; EU-SILC; European welfare states; Cost of children, subjective economic wellbeing, European welfare states, EU-SILC,Sozialwissenschaft; 8. Economic growth; Mediation analysis; [SHS] Humanities and Social Sciences; 509013 Social statistics; Cost of children

Understanding child-related costs is crucial given their impact on fertility and labour supplydecisions. We quantify compare the cost of children in Europe by analysing effect ofchild births parents’ self-reported ability to make ends meet. This study based EUSILClongitudinal data for 30 European countries from 2004 2015, enabling comparisonsbetween country groups different welfare regimes. Results show that newborns decreasesubjective economic wellbeing all regions, yet with economies scale number ofchildren. The drop mainly caused increased expenses due birth a child (directcosts), which are largest high-income regions. Immediate income losses mothers(indirect costs) less important explaining decrease. These closelyrelated employment patterns mothers highest regions where women takeextensive parental leave. In first years after birth, indirect mostly compensatedfor via public transfers or fathers, while direct ofchildren not compensated for.