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Non-Market Household Time and the cost of Children

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Author Info
Christos Koulovatianos ()
Carsten Schröder ()
Ulrich Schmidt ()

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Abstract

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 University of Vienna, Department of Economics in its series Vienna Economics Papers with number 0606.

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Date of creation: Jun 2006
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Handle: RePEc:vie:viennp:0606

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Find related papers by JEL classification:
D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
I31 - Health, Education, and Welfare - - Welfare and Poverty - - - General Welfare

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