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Parental time restrictions and the cost of children: insights from a survey among mothers

Author

Listed:
  • Melanie Borah

    (Otto von Guericke University Magdeburg)

  • Andreas Knabe

    (Otto von Guericke University Magdeburg
    CESifo
    IWH)

  • Kevin Pahlke

    (Otto von Guericke University Magdeburg)

Abstract

An important aspect when analyzing economic inequality between households with children is time. At given monetary incomes, the material well-being of families may be very different depending on how much time parents have at their disposal. In this paper, we provide estimates of the subjectively perceived cost of children depending on the extent of parental time restrictions. Building on a study by Koulovatianos, Schröder and Schmidt (J. Bus. Econ. Stat. 27:42–51, 2009) that introduces a novel way of using subjective income evaluation data for such estimations, we conduct a refined version of the underlying survey, focusing on young women with children in Germany. Our study confirms that the perceived monetary cost of children is substantial and increases with parental nonmarket time restrictions. The experienced loss in material living standards associated with supplying time to the labor market is sizeable for families with children.

Suggested Citation

  • Melanie Borah & Andreas Knabe & Kevin Pahlke, 2021. "Parental time restrictions and the cost of children: insights from a survey among mothers," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 19(1), pages 73-95, March.
    • Handle: RePEc:spr:joecin:v:19:y:2021:i:1:d:10.1007_s10888-020-09467-2
    DOI: 10.1007/s10888-020-09467-2
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    More about this item

    Keywords

    Child cost; Equivalence scales; Full-time employment; Subjective income evaluations;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • 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

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