Equivalence Scales, Employment and Household Production
The literature of household welfare distinguishes two different arguments in favour of regarding time as a an economic resource, the earning-capacity and the household-production argument. There exists some confusion about the two arguments, partly because empirical applications often use potential earnings to estimate the value of the time which is spent for household production. Nevertheless, the two arguments are clearly distinct and imply different assumptions and problems.
KeywordsLabour Market Hourly Wage Household Production Market Good Household Welfare
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