When Money Buys Time and When It Doesn't: Income, Gender, and the Social Organization of Domestic Work

Nikita Gupta, Abhishek Shaw, Anam Choudhary and Vidya Vemireddy

No 404606, 2026 Annual Meeting, July 26 - 28, 2026, Kansas City, Missouri from Agricultural and Applied Economics Association

Abstract: Can higher income buy time by reducing unpaid domestic work? Classical economic models of time allocation predict that as wages rise, households substitute market goods and services for time-intensive domestic tasks. Yet this mechanism may not operate uniformly in developing economies where service markets are incomplete, social norms constrain behaviour, and control over income differs within households. This paper revisits the money–time tradeoff in domestic work using panel data from the Consumer Pyramids Household Survey (CPHS) for India between 2022 and 2024. Weconstruct a measure of monetary intensity in domestic work defined as the ratio of household expenditure associated with domestic tasks to the time spent performing those tasks. Household fixed-effects regressions are used to examine how this money–time ratio responds to changes in wages, non-wage income, and gender-specific earnings. The analysis further explores heterogeneity across income quartiles, rural and urban locations, household gender composition, and state-level norms. Three findings emerge. First, increases in both wage and non-wage income are associated with higher monetary intensity in domestic work, indicating that households do substitute money for time. However, the estimated elasticities are modest, suggesting that substitution occurs gradually rather than dramatically. Second, the identity of the earner matters. Female wages exhibit a stronger association with the money–time ratio than male wages, suggesting that income earned by women more readily translates into expenditures that reduce domestic time burdens. Third, the ability to “buy time” depends on economic and institutional context. Substitution effects are stronger in urban areas and among higher-income households, while they remain limited among poorer households and in settings where decision-making structures are male-dominated. Taken together, the results suggest that income can buy time, but only under specific conditions. The conversion of income into time savings depends on three interconnected mechanisms: the opportunity cost of time created by wages, the agency of those who control earnings, and access to markets that provide substitutes for unpaid work. These findings highlight the importance of women’s 1economic agency and local market development in translating income gains into genuine reductions in unpaid labour.

Keywords: Consumer/Household Economics; Labor and Human Capital (search for similar items in EconPapers)
Pages: 46
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea26:404606

DOI: 10.22004/ag.econ.404606

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