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Daddy Months

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  • Meier, Volker
  • Rainer, Helmut

Abstract

We consider a bargaining model in which husband and wife decide on the allocation of time and disposable income. Since her bargaining power would go down otherwise more strongly, the wife agrees to having a child only if the husband also leaves the labor market for a while. The daddy months subsidy enables the couple to overcome a hold-up problem and thereby improves efficiency. However, the same ruling harms cooperative couples and may also reduce welfare in an endogenous taxation framework.

Suggested Citation

  • Meier, Volker & Rainer, Helmut, 2014. "Daddy Months," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100366, Verein für Socialpolitik / German Economic Association.
  • Handle: RePEc:zbw:vfsc14:100366
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    References listed on IDEAS

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    Cited by:

    1. Michael Ahlheim & Stefan Bruckmeyer & Kai A. Konrad & Lisa Windsteiger, 2020. "Verlorenes Glück — Zufriedenheitsverluste in der Corona-Krise [Lost Happiness — Loss of Life Satisfaction in the Corona Crisis]," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 100(8), pages 586-590, August.
    2. Ulrike Unterhofer & Katharina Wrohlich, 2017. "Fathers, Parental Leave and Gender Norms," Discussion Papers of DIW Berlin 1657, DIW Berlin, German Institute for Economic Research.

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    More about this item

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation

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