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Nonmarket household time and the cost of children

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  • Koulovatianos, Christos
  • Schröder, Carsten
  • Schmidt, Ulrich

Abstract

Raising children demands a considerable amount of parental time, obliging working parents either to reduce their leisure time further or to buy childcare services in the market. Parents may face additional opportunity costs upon deciding to participate in the labor market, but these are difficult to measure. Using a survey instrument in Belgium and Germany, we estimate the income compensation needed to maintain family well-being when adults work versus when they do not enter the labor market. In both countries we find that full-time working parents face extra child costs and require higher labor market participation compensation compared with childless adults. --

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Bibliographic Info

Paper provided by Kiel Institute for the World Economy (IfW) in its series Open Access Publications from Kiel Institute for the World Economy with number 28906.

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Date of creation: 2009
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Handle: RePEc:zbw:ifwkie:28906

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Cited by:
  1. Christos Koulovatianos & Carsten Schröder & Ulrich Schmidt, 2010. "Confronting the Representative Consumer with Household-Size Heterogeneity," Kiel Working Papers 1663, Kiel Institute for the World Economy.
  2. Timm Bönke & Carsten Schröder, 2011. "Poverty in Germany – Statistical Inference and Decomposition," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 231(2), pages 178-209, April.
  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. Schröder, Carsten & Bönke, Timm, 2012. "Country inequality rankings and conversion schemes," Economics Discussion Papers 2012-7, Kiel Institute for the World Economy.
  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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