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Valuing Lost Home Production Of Dual Earner Couples

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  • Christopher House
  • John Laitner
  • Dmitriy Stolyarov

Abstract

Using a life‐cycle model in which women divide their time between home and market work, we establish a link between retirement wealth and the value of forgone home production. We use data from the Health and Retirement Study to estimate the model's parameters and adjust the growth rate of GDP to reflect reductions in nonmarket output. We find that the value of forgone home production is modest—about 25% of women's measured earnings.

Suggested Citation

  • Christopher House & John Laitner & Dmitriy Stolyarov, 2008. "Valuing Lost Home Production Of Dual Earner Couples," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 49(2), pages 701-736, May.
    • Handle: RePEc:wly:iecrev:v:49:y:2008:i:2:p:701-736
    DOI: 10.1111/j.1468-2354.2008.00495.x
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