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Non-market household time and the cost of children

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

A distinguishing feature among households is whether adult members work or not, since the occupational status of adults affects their 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 occupational status of adults. Our tests support that 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). Moreover, we find supportive evidence for the hypothesis that, in two-adult households, there is a potential for within-household welfare gains from specialization in market- vs. domestic activities, especially childcare.

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Paper provided by Free University Berlin, School of Business & Economics in its series Discussion Papers with number 2006/22.

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Date of creation: 2006
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Handle: RePEc:zbw:fubsbe:200622
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