You can use jQuery with jQuery resize plugin (because default jQuery resize event handler only works when event target is window) to resize child divs when parent div has been resized.
Here is an example that will shrink parent div after 2 seconds, causing child div to also shrink:
Javascript:
$(document).ready(function() {
$('#parent').bind("resize", resizeChild);
setTimeout(resizeParent, 2000);
});
function resizeChild()
{
$("#child").css('width', $('#parent').width() - 20);
$("#child").css('height', $('#parent').height() - 20);
}
function resizeParent()
{
$("#parent").css('width', '100px')
$("#parent").css('height', '100px')
}
HTML:
<script type="text/javascript" src="http://code.jquery.com/jquery-1.4.2.min.js"></script>
<script type="text/javascript" src="http://github.com/cowboy/jquery-resize/raw/v1.1/jquery.ba-resize.min.js"></script>
<div id='parent'>
<div id='child'></div>
</div>
CSS:
#parent {
width:200px;
height:200px;
border:1px solid black;
}
#child {
width:180px;
height:180px;
border:1px solid black;
}
Proof of concept here: http://jsfiddle.net/t26ZW/