Nonmarket household time and the cost of children

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Nonmarket household time and the cost of children

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Title: Nonmarket household time and the cost of children
Author: Koulovatianos, Christos
Schröder, Carsten
Schmidt, Ulrich
Citation: Journal of Business and Economic Statistics, January, Vol. 27(1), pp.42-51
Publisher: American Statistical Association
Journal: Journal of Business and Economic Statistics
Date Issued: 2009-01
DOI: 10.1198/jbes.2009.0004
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.
Type: Article
Description: Formerly published as working paper by University of Vienna, Department of Economics. Authors' draft dated March 2007. Final version available at
Keywords: household productionchild costschild caresurvey method
ISSN: 0735001515372707

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