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Parental Time Restrictions and the Cost of Children: Insights from a Survey among Mothers

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Listed:
  • Melanie Borah
  • Andreas Knabe
  • Kevin Pahlke

Abstract

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 et al. (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 monetary cost of children is substantial and increases with parental nonmarket time restrictions. The loss in the material living standard associated with supplying time to the labor market is sizeable for families with children.

Suggested Citation

  • Melanie Borah & Andreas Knabe & Kevin Pahlke, 2018. "Parental Time Restrictions and the Cost of Children: Insights from a Survey among Mothers," CESifo Working Paper Series 7321, CESifo.
    • Handle: RePEc:ces:ceswps:_7321
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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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