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Non-Market Household Time and the cost of Children

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A distinguishing feature among households is whether adult members work or not, since the occupational status of adults affects their available time for home activities. Using a survey method in two countries, Belgium and Germany, we provide household incomes that retain the level of well-being across different family types, distinguished by family size and occupational status of adults. Our tests support that childcare-time costs are important determinants of household well-being. Estimates of child costs relative to an adult are higher for households that are time-constrained (all adults in the household work). Moreover, we find supportive evidence for the hypothesis that, in two-adult households, there is a potential for within-household welfare gains from specialization in market- vs. domestic activities, especially childcare.

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Paper provided by University of Vienna, Department of Economics in its series Vienna Economics Papers with number 0606.

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Date of creation: Jun 2006
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Handle: RePEc:vie:viennp:0606

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Web page: http://www.univie.ac.at/vwl

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Cited by:
  1. Christos Koulovatianos & Carsten Schröder & Ulrich Schmidt, 2010. "Confronting the Representative Consumer with Household-Size Heterogeneity," Discussion Papers of DIW Berlin 1056, DIW Berlin, German Institute for Economic Research.
  2. Schröder, Carsten & Bönke, Timm, 2012. "Country inequality rankings and conversion schemes," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy, vol. 6(28), pages 1-43.
  3. Koulovatianos, Christos & Schmidt, Ulrich & Schröder, Carsten, 2008. "Arbeitslosengeld II: Arbeitsanreize und Verteilungsgerechtigkeit," Open Access Publications from Kiel Institute for the World Economy 28707, Kiel Institute for the World Economy (IfW).
  4. Timm Bönke & Carsten Schröder, 2010. "Poverty in Germany: Statistical Inference and Decomposition," Discussion Papers of DIW Berlin 1060, DIW Berlin, German Institute for Economic Research.
  5. Bönke, Timm & Eichfelder, Sebastian & Utz, Stephen, 2012. "Uneven treatment of family life? Horizontal equity in the U.S. tax and transfer system," Discussion Papers 2012/18, Free University Berlin, School of Business & Economics.

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