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Daddy months

Author

Listed:
  • Meier, Volker
  • Rainer, Helmut

Abstract

We consider a bargaining model in which husband and wife decide on the allocation of time and disposable income, and fertility. Since her bargaining power would go down otherwise more strongly, the wife agrees to have a child only if the husband also leaves the labor market for a while. The daddy months subsidy enables the couple to overcome a hold-up problem and thereby improves efficiency. However, the same ruling harms other types of couples and may also reduce welfare in an endogenous taxation framework.

Suggested Citation

  • Meier, Volker & Rainer, Helmut, 2017. "Daddy months," Munich Reprints in Economics 49922, University of Munich, Department of Economics.
    • Handle: RePEc:lmu:muenar:49922
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    Cited by:

    1. Michael Ahlheim & Stefan Bruckmeyer & Kai A. Konrad & Lisa Windsteiger, 2020. "Verlorenes Glück — Zufriedenheitsverluste in der Corona-Krise [Lost Happiness — Loss of Life Satisfaction in the Corona Crisis]," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 100(8), pages 586-590, August.
    2. Unterhofer, Ulrike & Wrohlich, Katharina, 2017. "Fathers, Parental Leave and Gender Norms," IZA Discussion Papers 10712, IZA Network @ LISER.

    More about this item

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation

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