Daddy Months

Volker Meier and Helmut Rainer

VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy from Verein für Socialpolitik / German Economic Association

Abstract: We consider a bargaining model in which husband and wife decide on the allocation of time and disposable income. Since her bargaining power would go down otherwise more strongly, the wife agrees to having 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 cooperative couples and may also reduce welfare in an endogenous taxation framework.

JEL-codes: H21 J13 J22 (search for similar items in EconPapers)
Date: 2014
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Journal Article: Daddy months (2017)
Working Paper: Daddy months (2017)
Working Paper: Daddy Months (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc14:100366

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