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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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Bibliographic Info

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. Apps, Patricia & Rees, Ray, 2000. "Household Production, Full Consumption and the Costs of Children," IZA Discussion Papers 157, Institute for the Study of Labor (IZA).
  2. 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).
  3. Vassilis A. Hajivassiliou & Axel Borsch-Supan, 1990. "Smooth Unbiased Multivariate Probability Simulators for Maximum Likelihood Estimation of Limited Dependent Variable Models," Cowles Foundation Discussion Papers 960, Cowles Foundation for Research in Economics, Yale University.
  4. Apps, P.F. & Rees, R., 1996. "Collective Labor Supply and Household Production," Papers 301, Australian National University - Department of Economics.
  5. Rachel Connelly & Jean Kimmel, 2009. "Spousal influences on parents’ non-market time choices," Review of Economics of the Household, Springer, vol. 7(4), pages 361-394, December.
  6. Kooreman, P. & Kapteyn, A.J., 1984. "A disaggregated analysis of the allocation of time within the household," Research Memorandum 153, Tilburg University, Faculty of Economics and Business Administration.
  7. Apps, P. F. & Rees, R., 1996. "Labour supply, household production and intra-family welfare distribution," Journal of Public Economics, Elsevier, vol. 60(2), pages 199-219, May.
  8. Charlene Kalenkoski & David Ribar & Leslie Stratton, 2009. "The influence of wages on parents’ allocations of time to child care and market work in the United Kingdom," Journal of Population Economics, Springer, vol. 22(2), pages 399-419, April.
  9. Apps, Patricia, 2004. "Gender, time use, and models of the household," Policy Research Working Paper Series 3233, The World Bank.
  10. 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.
  11. Chiappori, P.A., 1994. "Introducing Household Production in Collective Models of Labour Suply," DELTA Working Papers 94-18, DELTA (Ecole normale supérieure).
  12. 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.
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Cited by:
  1. Elena Stancanelli & Hans Bloemen & Silvia Pasqua, 2008. "An Empirical Analysis of the Time Allocation of Italian Couples: Are Italian Men Irresponsive?," Sciences Po publications 3823, Sciences Po.
  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. 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).
  4. 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.
  5. 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.

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