Taxation and the value of nonmarket time

Leuthold, Jane H.

doi:10.1016/0049-089x(81)90017-x

Cited by 8 publications

(7 citation statements)

References 8 publications

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“…In other words the household work enlarges the access to goods and services as much as working in the labor market. Leuthold (1981) 1975-figures, and Bryant and Zick (1985 have had the same results for the U.S., hence women there contribute much less to the households…”

mentioning

confidence: 74%

“…Therefore, if one should pay tax on this income the labor supply would have to be raised, which would reduce household production (Ferber and Birnbaum, 1980). Leuthold (1981) mentions, that the possibility of tax reductions, such as subsidies, when other people take care of one's children while working on the labor market, in reality is the same as taxation of household production. Such an arrangement economically equalizes the conditions of households taking care of their own children and households bringing their children to day care institutions.…”

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confidence: 99%

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Distribution of Economic Resources: Implications of Including Household Production

Bonke

1992

Review of Income and Wealth

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The value of household production is estimated to 40–50 percent of GNP in most western countries, and because the distribution of this income‐in‐kind is different from ordinary income distribution, the concept of economic well‐being may include household production. The monetary value of household production is evaluated by a market alternative principle and an opportunity‐cost principle. In the last case a reservation wage is estimated, and integrated in a modified opportunity principle, which means that household work of non‐working women is evaluated by the reservation wage, and household work of working women and men by their wage‐rate. The conclusions are among others, that the inclusion of household production reduces the inequality, and that the women's contributions—money income and household production—functions as income equalizers.

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confidence: 74%

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confidence: 99%

Distribution of Economic Resources: Implications of Including Household Production

Bonke

1992

Review of Income and Wealth

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“…Imputed wage of a non-worker is the wage a person is likely to receive when working. Potential wage, on the other hand, is the lower bound of ones likely wage (Leuthold, 1981;Sharpe & Abdel-Ghany, 1997). These two concepts can be improvised to predict commute time of non-workers.…”

Section: Identifying Proximate Job Locationmentioning

confidence: 99%

“…The positive sign of the coefficient of LAMBDA ensures that potential wage is the lower bound of a non-worker's likely wage. In empirical studies, researchers have generally found LAMBDA to have a significant positive relationship with wage (Ferber & Green, 1985;Leuthold, 1981;Sharpe & Abdel-Ghany, 1997). While predicting the upper bound of commute time, one expects LAMBDA to have a significant negative relationship with the dependent variable.…”

Section: Identifying Proximate Job Locationmentioning

confidence: 99%

Predicting Commute Time of Non–Workers in the Context of Welfare Reform

Deka

2002

Journal of Urban Affairs

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In the context of recent welfare reform efforts, researchers have examined strategies for attracting jobs to inner cities, dispersing inner-city residents to suburban jobgrowth areas, and creating transportation connections between inner cities and suburban job-growth areas. However, little has been done to estimate the extent of potential commute of non-workers who are expected to become active workers as a result of welfare reform. This study attempts to predict the extent of non-workers' commute by using modeling techniques employed in labor economics. Data from the 1995 Nationwide Transportation Survey are utilized. Conforming to theoretical premises and logical expectations, I estimate that mean commute time of non-workers is likely to be substantially lower than those currently working. Policy implications of the empirical findings are discussed.

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“…Accurate use of income distribution as a measure of economic well-being necessitates the adjustment of household income to reflect the value of household production [26,33,37]. Failure to tax the imputed value of household production leads to discriminatory treatment of households with the same market income but with different household production levels [22,27]. Valuing homemaker's time is required for the assessment of damages in divorce, wrongful injury, and death litigation.…”

Section: Introductionmentioning

confidence: 99%

Measurement of the value of homemaker's time: an empirical test of the alternative methods of the opportunity cost approach

Sharpe

Abdel‐Ghany

1997

JEM

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Household production is typically measured by estimating the time that the homemaker spends in the various household activities. The focus in this paper was on valuating the household production time of Canadian full-time homemakers. Four variants of the opportunity cost approach, namely, imputed wage, potential wage, Heckman's two-stage reservation wage, and Kidd's reservation wage were used to estimate and compare homemaker's time. The results indicate that the four different variants yielded different estimates of the value of household production time. One of the main conclusions is that Heckman's two-stage reservation wage approach, albeit having the advantage of correcting selection bias, it produced a wide range for the estimated reservation wage, which led us to doubt its reliability as a practical measure of the value of household production time.

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Taxation and the value of nonmarket time

Cited by 8 publications

References 8 publications

Distribution of Economic Resources: Implications of Including Household Production

Distribution of Economic Resources: Implications of Including Household Production

Predicting Commute Time of Non–Workers in the Context of Welfare Reform

Measurement of the value of homemaker's time: an empirical test of the alternative methods of the opportunity cost approach

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