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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

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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Handle: RePEc:fda:fdaddt:2003-18

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  1. 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.
  2. Jenkins, Stephen P. & Osberg, Lars, 2003. "Nobody to Play With? The Implications of Leisure Coordination," IZA Discussion Papers 850, Institute for the Study of Labor (IZA).
  3. Jess Benhabib & Richard Rogerson & Randall Wright, 1991. "Homework in macroeconomics: household production and aggregate fluctuations," Staff Report 135, Federal Reserve Bank of Minneapolis.
  4. 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.
  5. 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.
  6. 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.
  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 Naples, Italy.
  8. Hallberg, Daniel & Klevmarken, Anders, 2001. "Time for Children, a Study of Parents’ Time Allocation," Working Paper Series 2001:21, Uppsala University, Department of Economics.
  9. Gruber, Jonathan, 1997. "The Consumption Smoothing Benefits of Unemployment Insurance," American Economic Review, American Economic Association, vol. 87(1), pages 192-205, March.
  10. Bentolila, S. & Ichino, A., 2000. "Unemployment and Consumption: are Job Losses Less Painful Near the Mediterranean?," Papers 0010, Centro de Estudios Monetarios Y Financieros-.
  11. 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.
  12. 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.
  13. Susan Dynarski & Jonathan Gruber, 1997. "Can Families Smooth Variable Earnings?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 28(1), pages 229-303.
  14. repec:ese:iserwp:2003-19 is not listed on IDEAS
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