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The Stress Cost of Children

Author

Listed:
  • Hielke Buddelmeyer

    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne; and Institute for the Study of Labor (IZA))

  • Daniel S. Hamermesh

    (Department of Economics and CentER, Tilburg University; Department of Economics, The University of Melbourne; CESifo (Munich); Centre for Economic Policy Research (London); and Institute for the Study of Labor (IZA))

  • Mark Wooden

    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne; and Institute for the Study of Labor (IZA))

Abstract

We use longitudinal data describing couples in Australia from 2001-12 and Germany from 2002-12 to examine how demographic events affect perceived time and financial stress. Consistent with the view of measures of stress as proxies for the Lagrangean multipliers in models of household production, we show that births increase time stress, especially among mothers, and that the effects last at least several years. Births generally also raise financial stress slightly. The monetary equivalent of the costs of the extra time stress is very large. While the departure of a child from the home reduces parents’ time stress, its negative impacts on the tightness of the time constraints are much smaller than the positive impacts of a birth.

Suggested Citation

  • Hielke Buddelmeyer & Daniel S. Hamermesh & Mark Wooden, 2015. "The Stress Cost of Children," Melbourne Institute Working Paper Series wp2015n01, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    • Handle: RePEc:iae:iaewps:wp2015n01
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    File URL: http://melbourneinstitute.unimelb.edu.au/downloads/working_paper_series/wp2015n01.pdf
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    References listed on IDEAS

    as
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    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. The Stress Cost of Children
      by maximorossi in NEP-LTV blog on 2015-06-10 17:37:21

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    Cited by:

    1. Yann Algan & Fabrice Murtin & Elizabeth Beasley & Kazuhito Higa & Claudia Senik, 2019. "Well-being through the lens of the internet," PLOS ONE, Public Library of Science, vol. 14(1), pages 1-23, January.
    2. repec:spo:wpmain:info:hdl:2441/63csdfkqvu9nfanvuffe3qk8r6 is not listed on IDEAS
    3. Sophie Cetre & Andrew E. Clark & Claudia Senik, 2016. "Happy People Have Children: Choice and Self-Selection into Parenthood," European Journal of Population, Springer;European Association for Population Studies, vol. 32(3), pages 445-473, August.
    4. Beuchert, Louise Voldby & Humlum, Maria Knoth & Vejlin, Rune, 2016. "The length of maternity leave and family health," Labour Economics, Elsevier, vol. 43(C), pages 55-71.
    5. Ursprung, Heinrich, 2019. "Endogenous maternity allowances as exemplified by academic promotion standards," Labour Economics, Elsevier, vol. 60(C), pages 1-11.
    6. repec:hal:spmain:info:hdl:2441/63csdfkqvu9nfanvuffe3qk8r6 is not listed on IDEAS

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    More about this item

    Keywords

    Births; children; financial stress; GSOEP; HILDA Survey; time stress;
    All these keywords.

    JEL classification:

    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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