Homework in Labor Economics: Household Production and Intertemporal Substitution

Posted: 10 Jul 2001

See all articles by Peter Rupert

Peter Rupert

University of California, Santa Barbara (UCSB) - Department of Economics

Richard Rogerson

Princeton University - Princeton School of Public and International Affairs; Arizona State University (ASU) - Economics Department; National Bureau of Economic Research (NBER)

Randall Wright

University of Wisconsin - Madison - Department of Finance, Investment and Banking; Federal Reserve Banks - Federal Reserve Bank of Minneapolis

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

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

Peter Rupert (Contact Author)

University of California, Santa Barbara (UCSB) - Department of Economics ( email )

2127 North Hall
Santa Barbara, CA 93106
United States

Richard Rogerson

Princeton University - Princeton School of Public and International Affairs ( email )

Princeton University
Princeton, NJ 08544-1021
United States

Arizona State University (ASU) - Economics Department ( email )

Tempe, AZ 85287-3806
United States
480-727-6671 (Phone)
602-965-0748 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Randall D. Wright

University of Wisconsin - Madison - Department of Finance, Investment and Banking ( email )

975 University Avenue
Madison, WI 53706
United States
608-263-3860 (Phone)

Federal Reserve Banks - Federal Reserve Bank of Minneapolis

90 Hennepin Avenue
Minneapolis, MN 55480
United States

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