The Impact of Home Production on Economic Inequality in Germany

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The Impact of Home Production on Economic Inequality in Germany

Author Info

Frick, Joachim R. () (DIW Berlin)
Grabka, Markus M. () (DIW Berlin)
Groh-Samberg, Olaf () (DIW Berlin)

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Abstract

Using representative income and time use-data from the German Socio-Economic Panel (SOEP), we estimate non-monetary income advantages arising from home production and analyse their impact on economic inequality. As an alternative to existing measures, we propose a predicted wage approach based on a bias-adjusted measure of hours spent on home production. Sensitivity analyses comparing results obtained from different approaches provide indications of methodological effects arising from the choice of method. Although the substantive notion of reduced inequality is stable, the degree of variation in our findings underscores the need for a harmonized approach in cross-nationally comparative research.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4023.

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Length: 41 pages
Date of creation: Feb 2009
Date of revision:
Handle: RePEc:iza:izadps:dp4023

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Paper
- Joachim R. Frick & Markus M. Grabka & Olaf Groh-Samberg, 2009. "The Impact of Home Production on Economic Inequality in Germany," SOEPpapers 159, DIW Berlin, The German Socio-Economic Panel (SOEP). [Downloadable!]

Find related papers by JEL classification:
D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty

This paper has been announced in the following NEP Reports:

NEP-ALL-2009-02-28 (All new papers)

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References listed on IDEAS
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.:

Duncan Ironmonger, 1996. "Counting outputs, capital inputs and caring labor: Estimating gross household product," Feminist Economics, Taylor and Francis Journals, vol. 2(3), pages 37-64, January. [Downloadable!] (restricted)
Smeeding, Timothy M & Weinberg, Daniel H, 2001. "Toward a Uniform Definition of Household Income," Review of Income and Wealth, Blackwell Publishing, vol. 47(1), pages 1-24, March. [Downloadable!] (restricted)

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This page was last updated on 2009-11-23.

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