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A structural model of the fixed time costs of market work

Author

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  • Donald, Stephen G.
  • Hamermesh, Daniel S.

Abstract

We link ATUS 2003-04 to March CPS data and examine market work's effects on non-market activity. In a structural model fixed time costs of work generate a utility-equivalent of 8% of income to be overcome before working becomes optimizing.

Suggested Citation

  • Donald, Stephen G. & Hamermesh, Daniel S., 2009. "A structural model of the fixed time costs of market work," Economics Letters, Elsevier, vol. 104(3), pages 125-128, September.
  • Handle: RePEc:eee:ecolet:v:104:y:2009:i:3:p:125-128
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    References listed on IDEAS

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    1. Blundell, Richard & Macurdy, Thomas, 1999. "Labor supply: A review of alternative approaches," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 27, pages 1559-1695, Elsevier.
    2. Kooreman, Peter & Kapteyn, Arie, 1987. "A Disaggregated Analysis of the Allocation of Time within the Household," Journal of Political Economy, University of Chicago Press, vol. 95(2), pages 223-249, April.
    3. Biddle, Jeff E & Hamermesh, Daniel S, 1990. "Sleep and the Allocation of Time," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 922-943, October.
    4. Daniel S. Hamermesh & Stephen Donald, 2007. "The Time and Timing Costs of Market Work," NBER Working Papers 13127, National Bureau of Economic Research, Inc.
    5. Cogan, John F, 1981. "Fixed Costs and Labor Supply," Econometrica, Econometric Society, vol. 49(4), pages 945-963, June.
    6. Mark Aguiar & Erik Hurst, 2007. "Measuring Trends in Leisure: The Allocation of Time Over Five Decades," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(3), pages 969-1006.
    7. Gronau, Reuben, 1980. "Home Production-A Forgotten Industry," The Review of Economics and Statistics, MIT Press, vol. 62(3), pages 408-416, August.
    8. Daniel S. Hamermesh & Harley Frazis & Jay Stewart, 2005. "Data Watch: The American Time Use Survey," Journal of Economic Perspectives, American Economic Association, vol. 19(1), pages 221-232, Winter.
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    Citations

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    Cited by:

    1. Elena Capatina, 2012. "Life Cycle Effects of Health Risk," Working Papers 201216, ARC Centre of Excellence in Population Ageing Research (CEPAR), Australian School of Business, University of New South Wales.
    2. Randon, Emanuela & Simmons, Peter, 2010. "Base consumption levels and fixed costs," Economics Letters, Elsevier, vol. 108(2), pages 222-224, August.
    3. David Blau & Tetyana Shvydko, 2011. "Labor Market Rigidities and the Employment Behavior of Older Workers," ILR Review, Cornell University, ILR School, vol. 64(3), pages 464-484, April.
    4. Roff, Jennifer & Lugo-Gil, Julieta, 2012. "A model of child support and the underground economy," Labour Economics, Elsevier, vol. 19(5), pages 668-681.
    5. Patricia Apps & Jan Kabátek & Ray Rees & Arthur Soest, 2016. "Labor supply heterogeneity and demand for child care of mothers with young children," Empirical Economics, Springer, vol. 51(4), pages 1641-1677, December.
    6. Kabátek, Jan, 2015. "Essays on public policy and household decision making," Other publications TiSEM 8cdb178e-ad98-42e5-a7e1-b, Tilburg University, School of Economics and Management.
    7. Karen Mumford & Antonia Parera‐Nicolau & Yolanda Pena‐Boquete, 2020. "Labour Supply and Childcare: Allowing Both Parents to Choose," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 82(3), pages 577-602, June.
    8. Robert A. Pollak, 2013. "Allocating Household Time: When Does Efficiency Imply Specialization?," NBER Working Papers 19178, National Bureau of Economic Research, Inc.
    9. Phaneuf, Daniel J., 2011. "Can consumption of convenience products reveal the opportunity cost of time?," Economics Letters, Elsevier, vol. 113(1), pages 92-95, October.
    10. Capatina, Elena, 2015. "Life-cycle effects of health risk," Journal of Monetary Economics, Elsevier, vol. 74(C), pages 67-88.

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    Keywords

    Time use Structural estimation;

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