On parental care and home production

Xiaoyan Youderian ()

Economics Bulletin, 2018, vol. 38, issue 1, 520-527

Abstract: I build a simple model on parental care and home production to consider an application of the Alchian-Allen theorem in time allocation problems. This theorem predicts that an increase in a parent's wage should lower the relative demand of parental care time to housework time. However, empirical studies find the opposite result. My model shows that the complementarity between parental time and education spending can explain this paradox.

Keywords: Time allocation; the Alchian-Allen Theorem; complementarity between parental time and education spending (search for similar items in EconPapers)
JEL-codes: I2 J1 (search for similar items in EconPapers)
Date: 2018-03-23
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