Authors: Joachim R Frick Markus M Grabka Olaf GrohSamberg
Publish Date: 2011/12/11
Volume: 43, Issue: 3, Pages: 1143-1169
Abstract
Using representative income and timeuse data from the German SocioEconomic Panel we estimate nonmonetary income advantages arising from home production and analyze their impact on economic inequality As an alternative to existing measures we propose a predicted wage approach that relaxes some of the strong assumptions underlying both the standard opportunity cost approach and the housekeeper wage approach We also propose a method of adjusting the number of hours spent on home production to reduce the bias arising from multitasking and joint production in timeuse data Sensitivity analyses comparing results among different approaches provide indications of method effects Although this study supports the evidence that considering home production leads to a reduction in inequality we show that the size of this effect differs according to the variations in the mean and distribution of the estimated monetary value of home production across the three approaches This finding underscores the need for a harmonized approach in crossnational comparative research
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