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Loafing or Learning? The Demand for Informal Education

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  • Fahr, René

    (University of Paderborn)

Abstract

Using detailed time use data for Germany a positive correlation is found between the level of schooling education and time investments in informal education. Two hypotheses explain this observation: (1) highly educated people have higher opportunity costs of their leisure time and thus prefer leisure activities which add to their market productivity (wage effect) and (2) highly educated people have a preference for ‘high quality’ leisure (taste effect). The demand for informal education is derived in a household production model accounting for both explanations. An empirical investigation finds evidence for both effects with the taste effect being the more important effect. Highly educated people accumulate human capital through their specific leisure time use. This increases the skill-gap between higher and lower educated people.

Suggested Citation

  • Fahr, René, 2003. "Loafing or Learning? The Demand for Informal Education," IZA Discussion Papers 859, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp859
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    References listed on IDEAS

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    Cited by:

    1. Beblavý, Miroslav & Thum, Anna-Elisabeth & Potjagailo, Galina, 2013. "When do adults learn? A cohort analysis of adult education in Europe," CEPS Papers 8059, Centre for European Policy Studies.

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    More about this item

    Keywords

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    JEL classification:

    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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