The Demand for Variety: A Household Production Perspective

Daniel Hamermesh and Reuben Gronau ()
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Reuben Gronau: Hebrew University, Jerusalem

No 2767, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Economists have devoted substantial attention to firms’ supply of variety, but little to consumers’ demand for variety. Employing the framework of home production, we trace differences in demand to differences in the opportunity costs of activities, which are associated with investments in human capital. Schooling alters time costs and changes the variety of activities household members choose. In time budgets from Australia, Israel, and West Germany we find that higher own and spouses’ incomes raise variety (suggesting positive income effects). Education increases variety independent of income and earnings; part of its impact goes beyond a correlation of educational attainment with preferences for variety.

Keywords: education; time use; gender (search for similar items in EconPapers)
JEL-codes: D13 J22 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2007-04
New Economics Papers: this item is included in nep-hrm
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Citations: View citations in EconPapers (2)

Published - published in: Review of Economics and Statistics, 2008, 90 (3), 562-572

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Related works:
Journal Article: The Demand for Variety: A Household Production Perspective (2008)
Working Paper: The Demand for Variety: A Household Production Perspective (2001)
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