Homework in Labor Economics: Household Production and Intertemporal Substitution
Posted: 10 Jul 2001
Abstract
We argue that estimates of intertemporal substitution elasticities obtained from standard life cycle models are subject to a downward bias because they neglect changes in work done at home over the life cycle. We extend the standard life cycle model to include home production and estimate it using data from three time use surveys. We find that the downward bias is large.
Keywords: Intertemporal substitution, Home production
JEL Classification: D1, J2
Suggested Citation: Suggested Citation
Rupert, Peter and Rogerson, Richard and Wright, Randall D., Homework in Labor Economics: Household Production and Intertemporal Substitution. Available at SSRN: https://ssrn.com/abstract=251892
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