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Time And The Cost Of Children

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  • Bruce Bradbury

Abstract

This paper uses the "adult goods" method to estimate the full costs of children. Full costs include both expenditure and time costs. Adult personal time (comprising pure leisure, sleep and other personal care) is used as the adult good. Previous research has shown that the presence of children in the household leads to a reduction in adult personal time. This paper develops a simple economic model of the household to show how this information can be used to develop an equivalence scale for adult consumption that takes account of both the expenditure and time costs of children. Preliminary estimates using Australian data suggest a very large cost-much higher than that typically assumed for expenditure costs. The full cost of children declines with age, despite the expenditure cost rising. The paper discusses the limitations of the adult good method and the assumptions needed to draw welfare conclusions from these and other estimates of child costs. Copyright 2008 The Author. Journal compilation 2008 International Association for Research in Income and Wealth Published.

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Bibliographic Info

Article provided by International Association for Research in Income and Wealth in its journal Review of Income and Wealth.

Volume (Year): 54 (2008)
Issue (Month): 3 (09)
Pages: 305-323

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Handle: RePEc:bla:revinw:v:54:y:2008:i:3:p:305-323

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Cited by:
  1. Marco Breschi & Alessio Fornasin & Matteo Manfredini, 2013. "Patterns of reproductive behavior in transitional Italy," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 29(44), pages 1227-1260, December.
  2. Christos Koulovatianos & Carsten Schröder & Ulrich Schmidt, . "Nonmarket Household Time and the Cost of Children," Discussion Papers 08/07, University of Nottingham, Centre for Finance, Credit and Macroeconomics (CFCM).
  3. Alfred Michael Dockery & Sherry Bawa, 2013. "The Impact of Children on Australian Couples' Wealth Accumulation," Bankwest Curtin Economics Centre Working Paper series WP1302, Bankwest Curtin Economics Centre (BCEC), Curtin Business School.
  4. Leonardo Becchetti & Elena Giachin Ricca & Alessandra Pelloni, 2013. "The Paradox of Children and Life Satisfaction," Social Indicators Research, Springer, vol. 111(3), pages 725-751, May.
  5. Olivier Thévenon & Angela Luci, 2012. "Reconciling Work, Family and Child Outcomes: What Implications for Family Support Policies?," Population Research and Policy Review, Springer, vol. 31(6), pages 855-882, December.

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