Household Spending on Children across Four Countries: State Provision of Services and Inequality Private Spending?

• In Event: 544 - Regular Session. Welfare State 2

Abstract

Evidence from the United States shows substantial inequalities in parental spending on children. This paper asks whether these inequalities exist in countries with greater public provision of education and child care. Using data from expenditure surveys from Australia, Norway, Spain, and the United States, the manuscript investigates parental spending across the income distribution on education, child care, and a range of goods for children. Descriptive results show higher inequalities along the income distribution in the United States than in each of the other countries. Regression results including control variables for a range of household characteristics show significantly higher inequality along the income distribution for child care and education in the United States compared to Norway. These results suggest that greater public provision reduce inequalities in private investments.

Author

• Sabino Kornrich, Emory University