- Economic Study published by the University of Wisconsin Institute for Research on Poverty in Madison, Wisconsin in 1981 by Jacques van der Gaag called ‘On Measuring the Cost of Children’
- The purpose of the study was to develop a narrow range of estimates on child-rearing expenses used in public policy decisions in Wisconsin
- It used 1988 CES data with Marginal cost and Indirect cost proxy
- Four states use this study. Two of them (Wisconsin and Nevada) use Percent of Obligator Income. Two of them (California and New York) use Income Shares.
- Prior to 2005, Georgia used this study with Percent of Obligator Income.
- The study concluded that second child costs 50% more than first child, 50% more than two child cost half of first and second