Work

Nonmarket Household Time and the Cost of Children

Year: 2009

Type: article

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.

Source: Journal of Business and Economic Statistics

DOI: 10.1198/jbes.2009.0004

Authors: Christos Koulovatianos, Carsten Schrder, Ulrich Schmidt

Institutions: University of Luxembourg, University of Exeter, Christian-Albrechts-Universität zu Kiel, Kiel Institute for the World Economy

Language: English

Topic: Gender, Labor, and Family Dynamics

Subfield: Gender Studies

Field: Social Sciences

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: green

Funders: Deutsche Forschungsgemeinschaft, A.G. Leventis Foundation