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“Mondays at the sun”: Unemployment, Time Use, and Consumption Patterns in Spain

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Namkee Ahn,
Juan F. Jimeno
Arantza Ugidos

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Abstract

This paper is a first step towards learning about the implications of unemployment with regard to the combination of consumption expenditures and time use within households under the theoretical base on Becker’s (1964) household production theory. We examine the Spanish experience, where the unemployment rate was above 15% since the early 1980s up to the late 1990s and, clearly, many unemployed workers were out of jobs involuntarily, hence forced to adjust their time and consumption allocation patterns accordingly. Our results, overall, seem consistent with the main prediction of the household production theory. What we found is that time intensive commodities (passive leisure, active leisure, housework and child care) are produced more in the households with unemployed individuals. We also find that (with the exception of single females) the proportion of consumption expenditures in time saving goods is lower in the households with unemployed individuals.

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Paper provided by FEDEA in its series Working Papers with number 2003-18.

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  2. Benhabib, Jess & Rogerson, Richard & Wright, Randall, 1991. "Homework in Macroeconomics: Household Production and Aggregate Fluctuations," Journal of Political Economy, University of Chicago Press, vol. 99(6), pages 1166-87, December. [Downloadable!] (restricted)
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  3. Juster, F Thomas & Stafford, Frank P, 1991. "The Allocation of Time: Empirical Findings, Behavioral Models, and Problems of Measurement," Journal of Economic Literature, American Economic Association, vol. 29(2), pages 471-522, June. [Downloadable!] (restricted)
  4. Begoña Álvarez & Daniel Miles, 2003. "Gender effect on housework allocation: Evidence from Spanish two-earner couples," Journal of Population Economics, Springer, vol. 16(2), pages 227-242, 05. [Downloadable!] (restricted)
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  5. Ruhm, Christopher J., 2003. "Healthy Living in Hard Times," IZA Discussion Papers 711, Institute for the Study of Labor (IZA). [Downloadable!]
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  6. Gruber, Jonathan, 1997. "The Consumption Smoothing Benefits of Unemployment Insurance," American Economic Review, American Economic Association, vol. 87(1), pages 192-205, March. [Downloadable!] (restricted)
  7. Andrea Ichino & Anna Sanz De Galdeano, 2004. "Reconciling Motherhood and Work: Evidence from Time Use Data in Three Countries," CSEF Working Papers 114, Centre for Studies in Economics and Finance (CSEF), University of Salerno, Italy. [Downloadable!]
  8. Di Tella, Rafael & MacCulloch, Robert J. & Oswald, Andrew J., 2001. "The Macroeconomics of Happiness," The Warwick Economics Research Paper Series (TWERPS) 615, University of Warwick, Department of Economics. [Downloadable!]
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  9. Rupert, Peter & Rogerson, Richard & Wright, Randall, 2000. "Homework in labor economics: Household production and intertemporal substitution," Journal of Monetary Economics, Elsevier, vol. 46(3), pages 557-579, December. [Downloadable!] (restricted)
  10. Bentolila, Samuel & Ichino, Andrea, 2000. "Unemployment and Consumption: Are Job Losses Less Painful near the Mediterranean?," CEPR Discussion Papers 2539, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  11. Hurd, Michael, 1980. "A Compensation Measure of the Cost of Unemployment to the Unemployed," The Quarterly Journal of Economics, MIT Press, vol. 95(2), pages 225-43, September. [Downloadable!] (restricted)
  12. Reuben Gronau & Daniel S. Hamermesh, 2003. "Time Vs. Goods: The Value of Measuring Household Production Technologies," NBER Working Papers 9650, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  13. Martin Browning & Thomas F. Crossley, 2000. "Shocks, Stocks and Socks: Consumption Smoothing and the Replacement of Durables During an Unemployment Spell," Econometric Society World Congress 2000 Contributed Papers 0386, Econometric Society. [Downloadable!]
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  14. Gary D. Hansen & Randall Wright, 1992. "The labor market in real business cycle theory," Quarterly Review, Federal Reserve Bank of Minneapolis, issue Spr, pages 2-12. [Downloadable!]
  15. Stephen L. Parente & Richard Rogerson & Randall Wright, 2000. "Homework in Development Economics: Household Production and the Wealth of Nations," Journal of Political Economy, University of Chicago Press, vol. 108(4), pages 680-687, August. [Downloadable!] (restricted)
  16. Jonathan Gruber, 1994. "The Consumption Smoothing Benefits of Unemployment Insurance," NBER Working Papers 4750, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  17. Ruhm, Christopher J. & Black, William E., 2002. "Does drinking really decrease in bad times?," Journal of Health Economics, Elsevier, vol. 21(4), pages 659-678, July. [Downloadable!] (restricted)
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  18. Hallberg, Daniel & Klevmarken, Anders, 2001. "Time for Children, a Study of Parents’ Time Allocation," Working Paper Series 2001:21, Uppsala University, Department of Economics. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Juan Prieto & Juan Gabriel Rodríguez & Rafael Salas, . "Polarization, Inequality and Tax Reforms," Working Papers 2003-23, FEDEA. [Downloadable!]
  2. Gash, Vanessa & Mertens, Antje & Romeu Gordo, Laura, 2006. "Are fixed-term jobs bad for your health? : a comparison of West-Germany and Spain," IAB Discussion Paper 200608, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]. [Downloadable!]
  3. Namkee Ahn & Juan Ramón García & Juan Francisco Jimeno, 2004. "The Impact of Unemployment on Individual Well-Being in the EU," Economics Working Papers 029, European Network of Economic Policy Research Institutes. [Downloadable!]
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