Time and Money: Substitutes in Real Terms and Complements in Satisfactions
Time and money are basic commodities in the utility function and are substitutes in real terms. To a certain extent, having time and money is a matter of either/or, depending on individual preferences and budget constraints. However, satisfaction with time and satisfaction with money are typically complements, i.e., individuals tend to be equally satisfied with both domains. In this paper, we provide an explanation for this apparent paradox through the analysis of the simultaneous determination of economic satisfaction and leisure satisfaction. We test some hypotheses, including the hypothesis that leisure satisfaction depends on both the quantity and quality of leisure-where quality is proxied by good intensiveness and social intensiveness. Our results show that both the quantity and the quality of leisure are important determinants of leisure satisfaction, and, since having money contributes to the quality of leisure, this explains the empirical findings of the satisfactions being complementary at the same time as the domains are substitutes. Interestingly, gender matters. Intra-household effects and especially individual characteristics are more pronounced for women than for men for both domain satisfactions. Additionally, good intensiveness is more important for men (e.g., housing conditions), whereas social intensiveness is more important for women (e.g., the presence of children and participation in leisure-time activities).
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gary S. Becker, 1974.
"A Theory of Social Interactions,"
NBER Working Papers
0042, National Bureau of Economic Research, Inc.
- Sendhil Mullainathan & Marianne Bertrand, 2001. "Do People Mean What They Say? Implications for Subjective Survey Data," American Economic Review, American Economic Association, vol. 91(2), pages 67-72, May.
- Ada Ferrer-i-Carbonell & Paul Frijters, 2002.
"How important is Methodology for the Estimates of the Determinants of Happiness?,"
Tinbergen Institute Discussion Papers
02-024/3, Tinbergen Institute.
- Ada Ferrer-i-Carbonell & Paul Frijters, 2004. "How Important is Methodology for the estimates of the determinants of Happiness?," Economic Journal, Royal Economic Society, vol. 114(497), pages 641-659, 07.
- Shelley Phipps & Peter Burton & Lars Osberg, 2001. "Time as a Source of Inequality Within Marriage: Are Husbands More Satisfied With Time for Themselves than Wives?," Feminist Economics, Taylor & Francis Journals, vol. 7(2), pages 1-21.
- Esperanza Vera-Toscano & Victoria Ateca-Amestoy & Rafael Serrano-Del-Rosal, 2006.
"Building Financial Satisfaction,"
Social Indicators Research- An International and Interdisciplinary Journal for Quality-of-Life Measurement,
Springer, vol. 77(2), pages 211-243, 06.
- Jens Bonke & Martin Browning, 2003. "The Distribution of Well-Being and Income within the Household," CAM Working Papers 2003-01, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
- Bruno S. Frey & Alois Stutzer, .
"What can Economists Learn from Happiness Research?,"
IEW - Working Papers
080, Institute for Empirical Research in Economics - University of Zurich.
- Bruno S. Frey & Alois Stutzer, 2002. "What Can Economists Learn from Happiness Research?," Journal of Economic Literature, American Economic Association, vol. 40(2), pages 402-435, June.
- Bruno S. Frey & Alois Stutzer, 2001. "What Can Economists Learn from Happiness Research?," CESifo Working Paper Series 503, CESifo Group Munich.
- Clark, Andrew E & Oswald, Andrew J, 1994. "Unhappiness and Unemployment," Economic Journal, Royal Economic Society, vol. 104(424), pages 648-59, May.
- van Praag, Bernard M. S., 2004.
"The Connexion between Old and New Approaches to Financial Satisfaction,"
IZA Discussion Papers
1162, Institute for the Study of Labor (IZA).
- Bernard M.S. Van Praag, 2004. "The Connexion between Old and New Approaches to Financial Satisfaction," Tinbergen Institute Discussion Papers 04-053/3, Tinbergen Institute.
- Bernard M.S. van Praag, 2004. "The Connexion Between Old and New Approaches to Financial Satisfaction," CESifo Working Paper Series 1212, CESifo Group Munich.
- Clark, A.E., 1995.
"Job Satisfaction and Gender: Why Are Women so Happy at Work?,"
DELTA Working Papers
95-10, DELTA (Ecole normale supérieure).
- Clark, Andrew E., 1997. "Job satisfaction and gender: Why are women so happy at work?," Labour Economics, Elsevier, vol. 4(4), pages 341-372, December.
- Clark, Andrew, 1993. "Job Satisfaction and Gender. Why are Women so Happy at Work?," Economics Discussion Papers 10015, University of Essex, Department of Economics.
- Meng-Wen Tsou & Jin-Tan Liu, 2001. "Happiness and Domain Satisfaction in Taiwan," Journal of Happiness Studies, Springer, vol. 2(3), pages 269-288, September.
- Clark, Andrew E & Oswald, Andrew J, 1993.
"Satisfaction and Comparison Income,"
Economics Discussion Papers
10018, University of Essex, Department of Economics.
- J.J. Ehrhardt & W.E. Saris & R. Veenhoven, 2000. "Stability of Life-satisfaction over Time," Journal of Happiness Studies, Springer, vol. 1(2), pages 177-205, June.
- Easterlin, Richard A, 2001. "Income and Happiness: Towards an Unified Theory," Economic Journal, Royal Economic Society, vol. 111(473), pages 465-84, July.
- Robert Lane, 2000. "Diminishing Returns to Income, Companionship – and Happiness," Journal of Happiness Studies, Springer, vol. 1(1), pages 103-119, March.
- Peter Burton & Shelley Phipps, 2007. "Families, Time And Money In Canada, Germany, Sweden, The United Kingdom And The United States," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 53(3), pages 460-483, 09.
- Jens Bonke & Mette Deding & Mette Lausten, 2009. "Time and Money," Journal of Happiness Studies, Springer, vol. 10(2), pages 113-131, April.
- Blanchflower, David G. & Oswald, Andrew J., 2001.
"Well-Being Over Time in Britain and the USA,"
The Warwick Economics Research Paper Series (TWERPS)
616, University of Warwick, Department of Economics.
- Barbara Bergmann, 1995. "Becker's theory of the family: Preposterous conclusions," Feminist Economics, Taylor & Francis Journals, vol. 1(1), pages 141-150.
- Victoria Ateca-Amestoy & Rafael Serrano-del-Rosal & Esperanza Vera-Toscano, 2004. "The Leisure Experience: Me and the Others," IESA Working Papers Series 0418, Institute for Social Syudies of Andalusia - Higher Council for Scientific Research.
- Robert Cummins, 2000. "Personal Income and Subjective Well-being: A Review," Journal of Happiness Studies, Springer, vol. 1(2), pages 133-158, June.
- Edward N. Wolff & Ajit Zacharias, 2003. "The Levy Institute Measure of Economic Well-Being," Economics Working Paper Archive wp_372, Levy Economics Institute.
- Namkee Ahn & Juan Ramón García & Juan Francisco Jimeno, 2004. "The Impact of Unemployment on Individual Well-Being in the EU," Economics Working Papers 029, European Network of Economic Policy Research Institutes.
When requesting a correction, please mention this item's handle: RePEc:lev:wrkpap:wp_451. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Marie-Celeste Edwards)
If references are entirely missing, you can add them using this form.