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How do parents allocate time : the effects of wages and income

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  • Hans G. Bloemen

    (Free University Amsterdam)

  • Elena Stancanelli

    (Observatoire Français des Conjonctures Économiques)

Abstract

This paper focuses on the time allocation of spouses and the impact of economic variables. We present a stylized model of the time allocation of spouses to illustrate the expected impact of wages and non-labour income. The empirical model simultaneously specifies three time-use choices – paid work, childcare, and housework – and wage and employment equations for each spouse, allowing for correlation across the errors of the ten equations. We exploit the rich information in the French time-use survey 1998-99 to estimate the model. The predictions of the theoretical model are mostly validated with the main exception of the standard hypothesis that performing housework does not bring utility. Parents’ market time responds positively to changes in own wage. The own-wage elasticity of housework is negative while childcare does not react to changes in own wage. Women’s non-market time is independent of their husband’s wage; but both housework and childcare of fathers react positively to an increase in their wife’s wage. Non-labour income reduces paid work by parents and increases their non-market time. Higher-educated and older parents spend more time with their children. There are significant and positive correlations across the errors of the spousal equations.

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Paper provided by Observatoire Francais des Conjonctures Economiques (OFCE) in its series Documents de Travail de l'OFCE with number 2008-30.

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Date of creation: 2008
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Handle: RePEc:fce:doctra:0830

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  1. Hersch, Joni & Stratton, Leslie S, 1994. "Housework, Wages, and the Division of Housework Time for Employed Spouses," American Economic Review, American Economic Association, vol. 84(2), pages 120-25, May.
  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 223-49, April.
  3. Apps, P.F. & Rees, R., 1996. "Collective Labor Supply and Household Production," Papers 301, Australian National University - Department of Economics.
  4. El Lahga, AbdelRahmen & Moreau, Nicolas, 2007. "The Effects of Marriage on Couples’ Allocation of Time Between Market and Non-Market Hours," IZA Discussion Papers 2619, Institute for the Study of Labor (IZA).
  5. Chiappori, Pierre-Andre, 1997. "Introducing Household Production in Collective Models of Labor Supply," Journal of Political Economy, University of Chicago Press, vol. 105(1), pages 191-209, February.
  6. Apps, P.F. & Rees, R., 1993. "Labour Supply, Household Production and Intra-Family Welfare Distribution," The Warwick Economics Research Paper Series (TWERPS) 405, University of Warwick, Department of Economics.
  7. Borsch-Supan, Axel & Hajivassiliou, Vassilis A., 1993. "Smooth unbiased multivariate probability simulators for maximum likelihood estimation of limited dependent variable models," Journal of Econometrics, Elsevier, vol. 58(3), pages 347-368, August.
  8. Connelly, Rachel & Kimmel, Jean, 2007. "Spousal Influences on Parents' Non-Market Time Choices," IZA Discussion Papers 2894, Institute for the Study of Labor (IZA).
  9. Patricia Apps, 2003. "Gender, Time Use and Models of the Household," CEPR Discussion Papers 464, Centre for Economic Policy Research, Research School of Economics, Australian National University.
  10. Kalenkoski, Charlene M. & Ribar, David C. & Stratton, Leslie S., 2006. "The Influence of Wages on Parents’ Allocations of Time to Child Care and Market Work in the United Kingdom," IZA Discussion Papers 2436, Institute for the Study of Labor (IZA).
  11. Apps, Patricia & Rees, Ray, 2001. "Household production, full consumption and the costs of children," Labour Economics, Elsevier, vol. 8(6), pages 621-648, December.
  12. Gronau, Reuben, 1977. "Leisure, Home Production, and Work-The Theory of the Allocation of Time Revisited," Journal of Political Economy, University of Chicago Press, vol. 85(6), pages 1099-1123, December.
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Cited by:
  1. Hans G. Bloemen & Elena G.F. Stancanelli, 2008. "An Empirical Analysis of the Time Allocation of Italian Couples: Are Italian Men Irresponsive?," THEMA Working Papers 2008-30, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
  2. Grossbard, Shoshana & Gimenez-Nadal, Jose Ignacio & Molina, José Alberto, 2010. "Racial Discrimination and Household Chores," IZA Discussion Papers 5345, Institute for the Study of Labor (IZA).
  3. Victoria Vernon, 2010. "Marriage: for love, for money…and for time?," Review of Economics of the Household, Springer, vol. 8(4), pages 433-457, December.
  4. Maria Gutiérrez-Domènech, 2010. "Parental employment and time with children in Spain," Review of Economics of the Household, Springer, vol. 8(3), pages 371-391, September.
  5. Kalenkoski, Charlene M. & Lacombe, Donald J., 2014. "Using Spatial Econometric Techniques to Analyze the Joint Employment Decisions of Spouses," IZA Discussion Papers 8050, Institute for the Study of Labor (IZA).

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