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Daddy months

Author

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  • Volker Meier

    (Ifo Institute for Economic Research and University of Munich)

  • Helmut Rainer

    (Ifo Institute for Economic Research and University of Munich)

Abstract

We consider a bargaining model in which husband and wife decide on the allocation of time and disposable income, and fertility. Since her bargaining power would go down otherwise more strongly, the wife agrees to have 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 other types of couples and may also reduce welfare in an endogenous taxation framework.

Suggested Citation

  • Volker Meier & Helmut Rainer, 2017. "Daddy months," Journal of Population Economics, Springer;European Society for Population Economics, vol. 30(3), pages 875-892, July.
    • Handle: RePEc:spr:jopoec:v:30:y:2017:i:3:d:10.1007_s00148-016-0631-y
    DOI: 10.1007/s00148-016-0631-y
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    Cited by:

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    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

    Keywords

    Fertility; Bargaining; Family policy; Labor supply;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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