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Endogenous Preferences for Parenting and Macroeconomic Outcomes

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  • Nigar Hashimzade

Abstract

This paper investigates the effects of parenting time on macroeconomic outcomes and welfare when parenting choices are determined by own childhood experience and social norms in an overlapping generations framework. Parenting time and material expenditures on children generate children’s human capital. When the share of parenting time is relatively low and parenting and leisure are complements or weak substitutes the model has two steady-state equilibria with different welfare levels. In the high-welfare equilibrium parents have stronger endogenous taste for parenting and spend more time with children and less in paid work. Higher productivity due to the higher human capital more than compensates for the reduction in working hours, leading to a higher output level, in comparison to the low-welfare equilibrium.

Suggested Citation

  • Nigar Hashimzade, 2020. "Endogenous Preferences for Parenting and Macroeconomic Outcomes," CESifo Working Paper Series 8062, CESifo.
    • Handle: RePEc:ces:ceswps:_8062
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    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Endogenous Preferences for Parenting and Macroeconomic Outcomes
      by Christian Zimmermann in NEP-DGE blog on 2020-03-16 04:28:49

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    More about this item

    Keywords

    endogenous preferences; parenting; time use; overlapping generations; human capital;
    All these keywords.

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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