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The Impact of Home Production on Economic Inequality in Germany

Listed author(s):
  • Joachim R. Frick
  • Markus M. Grabka
  • Olaf Groh-Samberg

Using representative income and time use-data from the German Socio-Economic Panel (SOEP), we estimate non-monetary income advantages arising from home production and analyse their impact on economic inequality. As an alternative to existing measures, we propose a predicted wage approach based on a bias-adjusted measure of hours spent on home production. Sensitivity analyses comparing results obtained from different approaches provide indications of methodological effects arising from the choice of method. Although the substantive notion of reduced inequality is stable, the degree of variation in our findings underscores the need for a harmonized approach in cross-nationally comparative research.

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File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.96091.de/diw_sp0159.pdf
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Paper provided by DIW Berlin, The German Socio-Economic Panel (SOEP) in its series SOEPpapers on Multidisciplinary Panel Data Research with number 159.

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Length: 36 p.
Date of creation: 2009
Handle: RePEc:diw:diwsop:diw_sp159
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Web page: http://www.diw.de/en/soep
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  1. Sutherland, Holly & DeCoster, Andre & Matsaganis, Manos & Tsakloglou, Panos, 2009. "Accurate income measurement for the assessment of public policies: final report," EUROMOD Working Papers EM7/09, EUROMOD at the Institute for Social and Economic Research.
  2. Duncan Ironmonger, 1996. "Counting outputs, capital inputs and caring labor: Estimating gross household product," Feminist Economics, Taylor & Francis Journals, vol. 2(3), pages 37-64.
  3. Gronau, Reuben, 1980. "Home Production-A Forgotten Industry," The Review of Economics and Statistics, MIT Press, vol. 62(3), pages 408-416, August.
  4. Jenkins, Stephen P & O'Leary, Nigel C, 1996. "Household Income Plus Household Production: The Distribution of Extended Income in the U.K," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 42(4), pages 401-419, December.
  5. Peter Gottschalk & Susan E. Mayer, 1997. "Changes in Home Production and Trends in Economic Inequality," Boston College Working Papers in Economics 382, Boston College Department of Economics.
  6. Smeeding, Timothy M & Weinberg, Daniel H, 2001. "Toward a Uniform Definition of Household Income," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 47(1), pages 1-24, March.
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