Time use data on work and leisure is presented for a broad group
of OECD countries. The home production model explicitly accounts
for taxes and public expenditures on day care and elder care, substitutes for work households perform at home. Taxes are important
for matching time use patterns in Canada, the UK, and continental
Europe, but cannot explain the high levels of market work and low
levels of home work observed in Scandinavia. Subsidies of services
like day care that substitute for home work are shown to be quantitatively important for bringing both market and home work predictions in line with the data. (JEL D13, E62, J13, J14)
Ragan, Kelly S.
"Taxes and Time Use: Fiscal Policy in a Household Production Model."
American Economic Journal: Macroeconomics,
Household Production and Intrahousehold Allocation
Fertility; Family Planning; Child Care; Children; Youth
Economics of the Elderly; Economics of the Handicapped; Non-labor Market Discrimination