The cost of children and its impact on the family budget. An application to Argentina
DOI:
https://doi.org/10.4067/S0718-88702021000100023Keywords:
Equivalence scales, Rothbarth approach, welfare, cost of childrenAbstract
Equivalence scales serve a key role in welfare analysis. However, the empirical evidence for Latin American countries has been relatively scarce. We estimate the cost of children for two-parent and single-parent families in Argentina using consumption data. The methodology follows the Rothbarth approach, in which the welfare of the parents depends on the expenditure in adult goods. Results indicate that the cost of children is increasing in the number of children in the household, but economies of scales at the family level are observed. Further, scales differ according to the family structure, and sex and age composition of the children.
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Copyright (c) 2021 Miriam Edith Berges, Lucia Echeverria, Juan Ignacio Rodriguez Biasone

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