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Daddy months

Volker Meier () and Helmut Rainer ()

Journal of Population Economics, 2017, vol. 30, issue 3, No 5, 875-892

Abstract: Abstract We consider a bargaining model in which husband and wife decide on the allocation of time and disposable income, and fertility. Since her bargaining power would go down otherwise more strongly, the wife agrees to have a child only if the husband also leaves the labor market for a while. The daddy months subsidy enables the couple to overcome a hold-up problem and thereby improves efficiency. However, the same ruling harms other types of couples and may also reduce welfare in an endogenous taxation framework.

Keywords: Fertility; Bargaining; Family policy; Labor supply (search for similar items in EconPapers)
JEL-codes: D13 H21 J13 J18 J22 (search for similar items in EconPapers)
Date: 2017
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Working Paper: Daddy Months (2014) Downloads
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