The Time and Timing Costs of Market Work
AbstractWith the American Time Use Survey of 2003 and 2004 we first examine whether additional market work has neutral impacts on the mix of non-market activities. The estimates indicate that fixed time costs of market work alter patterns of non-market activities, reducing leisure time and mostly increasing time devoted to household production. Similar results are found using time-diary data for Australia, Germany and the Netherlands. Direct estimates of the utility derived from goods consumption and two types of non-market time in the presence of these fixed costs indicate that they generate a utility-equivalent of as much as 8 percent of income that must be overcome before market work becomes an optimizing choice. Market work also alters the timing of a fixed amount of non-market activities during the day, away from the schedule chosen when market work imposes no timing constraints. All of these effects are mitigated by higher family income. The results provide a new supply-side explanation for the frequently observed discrete drop from full-time work to complete retirement.
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 National Bureau of Economic Research, Inc in its series NBER Working Papers with number 13127.
Date of creation: May 2007
Date of revision:
Publication status: published as "A Structural Model of the Fixed Time Costs of Market Work" Donald, Stephen G.; Hamermesh, Daniel S.; Economics Letters, September 2009, v. 104, iss. 3, pp. 125-28
Note: AG LS PE
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
Find related papers by JEL classification:
- D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
- J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-06-02 (All new papers)
- NEP-LAB-2007-06-02 (Labour Economics)
- NEP-LTV-2007-06-02 (Unemployment, Inequality & Poverty)
- NEP-UPT-2007-06-02 (Utility Models & Prospect Theory)
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.:
- Mikal Skuterud, 2007. "Identifying the Potential of Work-Sharing as a Job-Creation Strategy," Journal of Labor Economics, University of Chicago Press, vol. 25, pages 265-287.
- Mark Aguiar & Erik Hurst, 2006.
"Measuring trends in leisure: the allocation of time over five decades,"
06-2, Federal Reserve Bank of Boston.
- Mark Aguiar & Erik Hurst, 2007. "Measuring Trends in Leisure: The Allocation of Time over Five Decades," The Quarterly Journal of Economics, MIT Press, vol. 122(3), pages 969-1006, 08.
- Mark Aguiar & Erik Hurst, 2006. "Measuring Trends in Leisure: The Allocation of Time Over Five Decades," NBER Working Papers 12082, National Bureau of Economic Research, Inc.
- Richard Blundell & Thomas MaCurdy, 1998.
"Labour supply: a review of alternative approaches,"
IFS Working Papers
W98/18, Institute for Fiscal Studies.
- Robert M. Hutchens & Karen Grace-Martin, 2006. "Employer willingness to permit phased retirement: Why are some more willing than others?," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 59(4), pages 525-546, July.
- Hamermesh, Daniel S, 1999. "The Timing of Work over Time," Economic Journal, Royal Economic Society, vol. 109(452), pages 37-66, January.
- Cogan, John F, 1981. "Fixed Costs and Labor Supply," Econometrica, Econometric Society, vol. 49(4), pages 945-63, June.
- Richard B. Freeman & Ronald Schettkat, 2005. "Marketization of household production and the EU-US gap in work," Economic Policy, CEPR & CES & MSH, vol. 20(41), pages 6-50, 01.
- 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.
- Jess Benhabib & Richard Rogerson & Randall Wright, 1991. "Homework in macroeconomics: household production and aggregate fluctuations," Staff Report 135, Federal Reserve Bank of Minneapolis.
- Jeff E. Biddle & Daniel S. Hamermesh, 1989.
"Sleep and the Allocation of Time,"
NBER Working Papers
2988, National Bureau of Economic Research, Inc.
- Burda, Michael C. & Hamermesh, Daniel S. & Weil, Philippe, 2006. "The Distribution of Total Work in the EU and US," IZA Discussion Papers 2270, Institute for the Study of Labor (IZA).
- Alan L. Gustman & Thomas L. Steinmeier, 2004. "Minimum Hours Constraints, Job Requirements and Retirement," NBER Working Papers 10876, National Bureau of Economic Research, Inc.
- Gronau, Reuben, 1980. "Home Production-A Forgotten Industry," The Review of Economics and Statistics, MIT Press, vol. 62(3), pages 408-16, August.
- Pagán, Ricardo, 2013. "Time allocation of disabled individuals," Social Science & Medicine, Elsevier, vol. 84(C), pages 80-93.
- Catalina Amuedo-Dorantes & Sara de la Rica, 2009.
"The timing of work and work-family conflicts in Spain sho has a split work schedule and why?,"
- Amuedo-Dorantes, Catalina & de la Rica, Sara, 2009. "The Timing of Work and Work-Family Conflicts in Spain: Who Has a Split Work Schedule and Why?," IZA Discussion Papers 4542, Institute for the Study of Labor (IZA).
- Donald, Stephen G. & Hamermesh, Daniel S., 2009. "A structural model of the fixed time costs of market work," Economics Letters, Elsevier, vol. 104(3), pages 125-128, September.
- Blau, David M. & Shvydko, Tetyana, 2007.
"Labor Market Rigidities and the Employment Behavior of Older Workers,"
IZA Discussion Papers
2996, Institute for the Study of Labor (IZA).
- David Blau & Tetyana Shvydko, 2011. "Labor Market Rigidities and the Employment Behavior of Older Workers," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 64(3), pages 464-484, April.
- Tetyana Shvydko & David Blau, 2007. "Labor Market Rigidities and the Employment Behavior of Older Workers," Working Papers 07-21, Center for Economic Studies, U.S. Census Bureau.
- Mark Aguiar & Erik Hurst, 2008. "The Increase in Leisure Inequality," NBER Working Papers 13837, National Bureau of Economic Research, Inc.
- Nicoleta Caragea-Hrehorciuc, 2008. "The work in Romania : an analysis of the macroeconomic perspective," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 42(5-6), pages 117-126.
- Stewart, Jay, 2009.
"The Timing of Maternal Work and Time with Children,"
IZA Discussion Papers
4219, Institute for the Study of Labor (IZA).
- Jay Stewart, 2009. "The Timing of Maternal Work and Time with Children," Working Papers 425, U.S. Bureau of Labor Statistics.
- Jorge Gonzalez-Chapela, 2005. "On Measuring Convergence in the Use of Time," MEA discussion paper series 05096, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.