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Non-market time and household well-being

  • Koulovatianos, Christos
  • Schröder, Carsten
  • Schmidt, Ulrich

A distinguishing feature among households is whether adult members work or not, since the employment status affects a household's available time for home activities. Using a survey method in two countries, Belgium and Germany, we provide household incomes that retain the level of well-being across different family types, distinguished by family size and employment status of adults. Our tests support that specialization in home production and childcare-time costs are important determinants of household well-being. Estimates of child costs relative to an adult are higher for households that are time-constrained (all adults in the household work), and also higher for poorer households.

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Paper provided by Free University Berlin, School of Business & Economics in its series Discussion Papers with number 2005/11.

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Date of creation: 2005
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Handle: RePEc:zbw:fubsbe:200511
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  15. Hamermesh, Daniel S. & Gronau, Reuben, 2007. "The Demand for Variety: A Household Production Perspective," IZA Discussion Papers 2767, Institute for the Study of Labor (IZA).
  16. Apps, P.F. & Rees, R., 1993. "Labour Supply, Household Production and Intra-Family Welfare Distribution," Working Papers 1993-3, University of Guelph, Department of Economics and Finance.
  17. Herbertsson, Tryggvi Thor & Orszag, Mike, 2003. "The Early Retirement Burden: Assessing the Costs of the Continued Prevalence of Early Retirement in OECD Countries," IZA Discussion Papers 816, Institute for the Study of Labor (IZA).
  18. Donaldson, David & Pendakur, Krishna, 2004. "Equivalent-expenditure functions and expenditure-dependent equivalence scales," Journal of Public Economics, Elsevier, vol. 88(1-2), pages 175-208, January.
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