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Home production technology and time allocation: empirics, theory, and implications

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  • Lei Fang
  • Guozhong Zhu

Abstract

We document a set of time use patterns in both time series and cross sections. To explain these facts, we propose and estimate a model of time allocation that emphasizes the role of home production technology. We find it necessary to consider both labor-augmenting technology and total factor productivity in home production. Based on the estimated model, we study the effects of proportional tax and lump-sum transfer on time allocation and labor supply, with the roles of home production technology and wage heterogeneity highlighted.

Suggested Citation

  • Lei Fang & Guozhong Zhu, 2012. "Home production technology and time allocation: empirics, theory, and implications," FRB Atlanta Working Paper 2012-19, Federal Reserve Bank of Atlanta.
    • Handle: RePEc:fip:fedawp:2012-19
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    File URL: http://www.frbatlanta.org/documents/pubs/wp/wp1219.pdf
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    References listed on IDEAS

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    2. Kathleen McKiernan, 2018. "Welfare Impact of Social Security Reform: The Case of Chile in 1981," 2018 Meeting Papers 253, Society for Economic Dynamics.
    3. Bridgman, Benjamin, 2016. "Home productivity," Journal of Economic Dynamics and Control, Elsevier, vol. 71(C), pages 60-76.

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