Anderson VIL

We propose a method to assess the full cost of children by endogenously identifying the price of parental time, which is not assumed to equal the parent’s wage rate. Instead, the price of time depends on how parents perceive their time spent with children. Our model builds on a collective labor supply framework for couples, incorporating distinct individual preferences and childcare technology. Using 2019 PSID data, we find that 68\% of mothers' childcare time is perceived as work, compared to 53\% for fathers. Additionally, our results show that a significant share of the full cost of children is non-monetary.

@article{article2, author = {Anderson VIL and Olivier DONNI}, title = {The Household Demand for Leisure, the Price of Time and the Full Cost of Children }, abstract = {We propose a method to assess the full cost of children by endogenously identifying the price of parental time, which is not assumed to equal the parent’s wage rate. Instead, the price of time depends on how parents perceive their time spent with children. Our model builds on a collective labor supply framework for couples, incorporating distinct individual preferences and childcare technology. Using 2019 PSID data, we find that 68\% of mothers' childcare time is perceived as work, compared to 53\% for fathers. Additionally, our results show that a significant share of the full cost of children is non-monetary. }, pages = {1--30}, year = {2024}, }