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Home production technology and time allocation: empirics, theory, and implications

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  • Lei Fang
  • Guozhong Zhu

Abstract

We document a set of time use patterns in both time series and cross sections. To explain these facts, we propose and estimate a model of time allocation that emphasizes the role of home production technology. We find it necessary to consider both labor-augmenting technology and total factor productivity in home production. Based on the estimated model, we study the effects of proportional tax and lump-sum transfer on time allocation and labor supply, with the roles of home production technology and wage heterogeneity highlighted.

Suggested Citation

  • Lei Fang & Guozhong Zhu, 2012. "Home production technology and time allocation: empirics, theory, and implications," FRB Atlanta Working Paper 2012-19, Federal Reserve Bank of Atlanta.
    • Handle: RePEc:fip:fedawp:2012-19
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    File URL: http://www.frbatlanta.org/documents/pubs/wp/wp1219.pdf
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    References listed on IDEAS

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    Cited by:

    1. Kathleen McKiernan, 2021. "Social Security Reform in the Presence of Informality," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 40, pages 228-251, April.
    2. Bridgman, Benjamin, 2016. "Home productivity," Journal of Economic Dynamics and Control, Elsevier, vol. 71(C), pages 60-76.
    3. Kathleen McKiernan, 2021. "Social Security Reform in the Presence of Informality," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 40, pages 228-251, April.
    4. Shaofeng Xu & Jie Feng, 2024. "Home production and time use in an epidemic," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 57(4), pages 1391-1433, November.
    5. Kathleen McKiernan, 2018. "Welfare Impact of Social Security Reform: The Case of Chile in 1981," 2018 Meeting Papers 253, Society for Economic Dynamics.

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