The impact of home production on economic inequality in Germany
AbstractUsing representative income and time-use data from the German Socio-Economic Panel, we estimate non-monetary income advantages arising from home production and analyze their impact on economic inequality. As an alternative to existing measures, we propose a predicted wage approach that relaxes some of the strong assumptions underlying both the standard opportunity cost approach and the housekeeper wage approach. We also propose a method of adjusting the number of hours spent on home production to reduce the bias arising from multi-tasking and joint production in time-use data. Sensitivity analyses comparing results among different approaches provide indications of method effects. Although this study supports the evidence that considering home production leads to a reduction in inequality, we show that the size of this effect differs according to the variations in the mean and distribution of the estimated monetary value of home production across the three approaches. This finding underscores the need for a harmonized approach in cross-national comparative research. Copyright Springer-Verlag 2012
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Bibliographic InfoArticle provided by Springer in its journal Empirical Economics.
Volume (Year): 43 (2012)
Issue (Month): 3 (December)
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Other versions of this item:
- Frick, Joachim R. & Grabka, Markus M. & Groh-Samberg, Olaf, 2012. "The Impact of Home Production on Economic Inequality in Germany," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 1143-1169.
- Joachim R. Frick & Markus M. Grabka & Olaf Groh-Samberg, 2009. "The Impact of Home Production on Economic Inequality in Germany," SOEPpapers on Multidisciplinary Panel Data Research 159, DIW Berlin, The German Socio-Economic Panel (SOEP).
- Frick, Joachim R. & Grabka, Markus M. & Groh-Samberg, Olaf, 2009. "The Impact of Home Production on Economic Inequality in Germany," IZA Discussion Papers 4023, Institute for the Study of Labor (IZA).
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
- I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
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