The Time Cost of Children and Equivalent Full Incomes
AbstractWhen defining and estimating the cost of children and equivalent incomes, children's consumption is normally defined as the household's cash expenditure on consumption goods for children. In fact, a heavy item in the cost of children under school age is time. This paper examines the cost of children and the definition of equivalent incomes in a simple model where income is full income a.."l defined by Gary Becker, while time spent caring for children at home is unpaid work. Equivalent full income for a household with pre-school children is defined. It is also shown that, as long as the wage rate is higher than the price of child care, the parents' participation in paid labour will be the same whether the care time is compensated for by free child care or as a lump sum. Both kinds of compensation will increase parents' consumption of leisure. It is therefore argued that, in the absence of reliable data for full income, time studies provide a useful welfare indicator by giving data for leisure. The assumptions of the model are discussed both from the point of view of welfare analysis, and from the point of view of the capability approach to human well-being.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Oslo University, Department of Economics in its series Memorandum with number 08/2002.
Length: 14 pages
Date of creation: 31 May 2002
Date of revision:
Contact details of provider:
Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway
Phone: 22 85 51 27
Fax: 22 85 50 35
Web page: http://www.oekonomi.uio.no/indexe.html
More information through EDIRC
Cost of children; equivalent incomes; welfare analysis; capability approach to human well-being;
Find related papers by JEL classification:
- A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
- J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Rhiana Bergh-Seeley).
If references are entirely missing, you can add them using this form.