“Poor and wealthy hand-to-mouth households in Belgium”
Published, Review of Economics of the Household,
with Laurens Cherchye , Thomas Demuynck , Bram De Rock , Geoffrey Minne, Maite De Sola Perea and Frederic Vermeulen
We identify the population shares of poor hand-to-mouth households, wealthy hand-to-mouth households and non hand-to-mouth households in Belgium. We apply the methodology proposed by Kaplan & Violante (2014) and Kaplan et al., (2014) to the Belgian component of the Household Finance and Consumption Survey. We find that the fraction of hand-to-mouth households in Belgium is substantial and predominantly consists of wealthy hand-to-mouth households. We also compare the observable characteristics and marginal propensities to consume (MPCs) of the three household types. Belgian wealthy hand-to-mouth households have characteristics that resemble those of the non hand-to-mouth households, while their MPCs are often more similar to those of the poor hand-to-mouth households. This pleads for giving a unique place to each type of household when evaluating the effects of fiscal policy
I examine fertility and parental labor supply decisions allowing for heterogenous expectations. I developed a new model and incorporated fertility choices into the dynamic collective framework with the biased perception of marital stability. I use this model to understand the career costs of fertility weighing economic benefits together with psychological factors. In particular, I explore if the biased perception of stability impacts fertility, loss of skills during interruptions, and lower accumulation of individual assets. Lastly, I assess the extended implications of policies that promote fertility and maternal labor supply, with a focus on childcare subsidies and paternity leave initiatives.