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The Impact of Home Production on Economic Inequality in Germany

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  • Joachim R. Frick
  • Markus M. Grabka
  • Olaf Groh-Samberg

Abstract

Using representative income and time use-data from the German Socio-Economic Panel (SOEP), we estimate non-monetary income advantages arising from home production and analyse their impact on economic inequality. As an alternative to existing measures, we propose a predicted wage approach based on a bias-adjusted measure of hours spent on home production. Sensitivity analyses comparing results obtained from different approaches provide indications of methodological effects arising from the choice of method. Although the substantive notion of reduced inequality is stable, the degree of variation in our findings underscores the need for a harmonized approach in cross-nationally comparative research.

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Bibliographic Info

Paper provided by DIW Berlin, The German Socio-Economic Panel (SOEP) in its series SOEPpapers on Multidisciplinary Panel Data Research with number 159.

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Length: 36 p.
Date of creation: 2009
Date of revision:
Handle: RePEc:diw:diwsop:diw_sp159

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Keywords: Home Production; Non-Cash Incomes; Economic Inequality; Well-being; SOEP;

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References

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  1. Burda, Michael C. & Hamermesh, Daniel S., 2010. "Unemployment, market work and household production," Economics Letters, Elsevier, vol. 107(2), pages 131-133, May.
  2. Michael C. Burda & Daniel S. Hamermesh, 2009. "Evidence on Unemployment, Market Work and Household Production," SFB 649 Discussion Papers SFB649DP2009-043, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
  3. Iulie Aslaksen & Charlotte Koren, 1996. "Unpaid household work and the distribution of extended income: The Norwegian experience," Feminist Economics, Taylor & Francis Journals, vol. 2(3), pages 65-80.
  4. Harley Frazis & Jay Stewart, 2006. "How Does Household Production Affect Earnings Inequality?: Evidence from the American Time Use Survey," Economics Working Paper Archive wp_454, Levy Economics Institute.
  5. W. Keith Bryant & Hyojin Kang & Cathleen D. Zick & Anna Y. Chan, 2004. "Measuring Housework in Time Use Surveys," Review of Economics of the Household, Springer, vol. 2(1), pages 23-47, 03.
  6. Graham, John W & Green, Carole A, 1984. "Estimating the Parameters of a Household Production Function with Joint Products," The Review of Economics and Statistics, MIT Press, vol. 66(2), pages 277-82, May.
  7. Gronau, Reuben, 1980. "Home Production-A Forgotten Industry," The Review of Economics and Statistics, MIT Press, vol. 62(3), pages 408-16, August.
  8. Harley Frazis & Jay Stewart, 2011. "How does household production affect measured income inequality?," Journal of Population Economics, Springer, vol. 24(1), pages 3-22, January.
  9. Joachim R. Frick & Jan Goebel & Markus M. Grabka, 2007. "Assessing the Distributional Impact of "Imputed Rent" and "Non-cash Employee Income" in Microdata: Case Studies Based on EU-SILC (2004) and SOEP (2002)," SOEPpapers on Multidisciplinary Panel Data Research 2, DIW Berlin, The German Socio-Economic Panel (SOEP).
  10. Duncan Ironmonger, 1996. "Counting outputs, capital inputs and caring labor: Estimating gross household product," Feminist Economics, Taylor & Francis Journals, vol. 2(3), pages 37-64.
  11. Bonke, Jens, 1992. "Distribution of Economic Resources: Implications of Including Household Production," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 38(3), pages 281-93, September.
  12. repec:ese:emodwp:em7-09 is not listed on IDEAS
  13. Joachim R. Frick & Markus M. Grabka & Olaf Groh-Samberg, 2010. "Economic Gains from Educational Transfers in Kind in Germany," Journal of Income Distribution, Journal of Income Distribution, vol. 19(3-4), pages 17-40, September.
  14. Jenkins, Stephen P & O'Leary, Nigel C, 1996. "Household Income Plus Household Production: The Distribution of Extended Income in the U.K," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 42(4), pages 401-19, December.
  15. Daniel Hallberg & Anders Klevmarken, 2003. "Time for children: A study of parent's time allocation," Journal of Population Economics, Springer, vol. 16(2), pages 205-226, 05.
  16. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
  17. Smeeding, Timothy M & Weinberg, Daniel H, 2001. "Toward a Uniform Definition of Household Income," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 47(1), pages 1-24, March.
  18. Marcel Kerkhofs & Peter Kooreman, 2003. "Identification and estimation of a class of household production models," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 18(3), pages 337-369.
  19. Cathleen Zick & W. Bryant & Sivithee Srisukhumbowornchai, 2008. "Does housework matter anymore? The shifting impact of housework on economic inequality," Review of Economics of the Household, Springer, vol. 6(1), pages 1-28, March.
  20. Peter Gottschalk & Susan E. Mayer, 1997. "Changes in Home Production and Trends in Economic Inequality," Boston College Working Papers in Economics 382, Boston College Department of Economics.
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Cited by:
  1. Joachim R. Frick & Kristina Krell, 2009. "Einkommensmessungen in Haushaltspanelstudien für Deutschland: ein Vergleich von EU-SILC und SOEP," SOEPpapers on Multidisciplinary Panel Data Research 237, DIW Berlin, The German Socio-Economic Panel (SOEP).
  2. Joachim R. Frick & Kristina Krell, 2010. "Measuring Income in Household Panel Surveys for Germany: A Comparison of EU-SILC and SOEP," SOEPpapers on Multidisciplinary Panel Data Research 265, DIW Berlin, The German Socio-Economic Panel (SOEP).
  3. Luca Marchiori & Olivier Pierrard, 2012. "LOLA 2.0: Luxembourg OverLapping generation model for policy Analysis," BCL working papers 76, Central Bank of Luxembourg.

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