“Poor and wealthy hand-to-mouth households in Belgium”
Published, Review of Economics of the Household,
November 2023
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
“A Spouse and a House are all we need? Housing Demand, Labor
Supply and Divorce over the Lifecycle” (submitted)
with
Bram De Rock
and
Tom Potoms
“Personality traits, the marriage market, and household
behavior”
with
Gastón P. Fernández
“Self-Motivated Beliefs and Optimal Parenthood Decisions”
Standard collective models of household behavior assume that individuals hold accurate beliefs about marriage stability and, consequently, their insurance within the family unit. I test this assumption by comparing individuals' expectations about marital stability with objective benchmarks. First, I find that individuals have distorted beliefs about marital stability, with the majority being optimistic about their own divorce probabilities. Second, when presented with information about actual divorce rates, respondents do not update their beliefs about their own marital stability but adjust their intentions regarding fertility, career, and childcare arrangements. I propose that the mechanism behind this behavior is self-motivated beliefs and analyze its consequences for fertility decisions, parental careers, and individual insurance choices.
“Gender Inequality, the marriage market and the preferences
for childcare”