Nonmarket Household Time and the Cost of Children

Christos Koulovatianos, Carsten Schröder and Ulrich Schmidt

Discussion Papers from University of Nottingham, Centre for Finance, Credit and Macroeconomics (CFCM)

Abstract: Raising children demands a considerable amount of parental time, obliging working parents either to further reduce their leisure or to buy child-care services in the market. Parents may face additional opportunity costs upon deciding to participate in the labor market, but these are difficult to measure. Using a survey instrument in Belgium and Germany, we estimate the income compensation needed to maintain family well-being when adults work vs. when they do not enter the labor market. In both countries we find that full-time working parents face extra child costs and require higher labor-market-participation compensation compared to childless adults.

Keywords: equivalent income; household well-being; reservation wage; child costs; parental unemployment trap; survey method. (search for similar items in EconPapers)
Date: 2008-07
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https://www.nottingham.ac.uk/cfcm/documents/papers/08-07.pdf (application/pdf)

Related works:
Journal Article: Nonmarket Household Time and the Cost of Children (2009)
Working Paper: Nonmarket household time and the cost of children (2009)
Working Paper: Non-Market Household Time and the cost of Children (2006)
Working Paper: Non-market household time and the cost of children (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:not:notcfc:08/07

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