Are Children Decision-Makers within the Household?

This article seeks to determine whether children aged 16 and over and who are living with their parents influence the household decision-making process. Assuming collective rationality within the household, we show how a minimal number of decision-makers can be inferred from the parametric constraints of the collective model. Using UK Family Expenditure Surveys, we find the data to be consistent with the children being decision-makers. When stratifying the sample by age and by gender, our results indicate that both children aged between 16 and 21 and daughters, irrespective of their age, are decision-makers. Results for sons and children age 22 and over are less conclusive. Finally, the collective model is never rejected.