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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Paper provided by DIW Berlin, The German Socio-Economic Panel (SOEP) in its series SOEPpapers with number
159.
Find related papers by JEL classification: D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty
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