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Nonmarket Household Time and the Cost of Children

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Author Info
Koulovatianos, Christos
Schrder, Carsten
Schmidt, Ulrich

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Abstract

Raising children demands a considerable amount of parental time, obliging working parents either to reduce their leisure time further or to buy childcare services in the market. Parents may face additional opportunity costs upon deciding to participate in the labor market, but these are difficult to measure. Using a survey instrument in Belgium and Germany, we estimate the income compensation needed to maintain family well-being when adults work versus when they do not enter the labor market. In both countries we find that full-time working parents face extra child costs and require higher labor market participation compensation compared with childless adults.

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File URL: http://pubs.amstat.org/doi/abs/10.1198/jbes.2009.0004
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Publisher Info
Article provided by American Statistical Association in its journal Journal of Business and Economic Statistics.

Volume (Year): 27 (2009)
Issue (Month): ()
Pages: 42-51
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Handle: RePEc:bes:jnlbes:v:27:y:2009:p:42-51

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References listed on IDEAS
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  18. Koulovatianos, Christos & Schroder, Carsten & Schmidt, Ulrich, 2005. "On the income dependence of equivalence scales," Journal of Public Economics, Elsevier, vol. 89(5-6), pages 967-996, June. [Downloadable!] (restricted)
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  24. Patricia Apps & Ray Rees, 2007. "The Taxation of Couples," Discussion Papers 07/21, Department of Economics, University of York. [Downloadable!]
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  28. Apps, Patricia, 1982. "Institutional inequality and tax incidence," Journal of Public Economics, Elsevier, vol. 18(2), pages 217-242, July. [Downloadable!] (restricted)
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  31. Graham, John W & Green, Carole A, 1984. "Estimating the Parameters of a Household Production Function with Joint Products," The Review of Economics and Statistics, MIT Press, vol. 66(2), pages 277-82, May. [Downloadable!] (restricted)
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