Working Papers, Department of Economics, Lund University
The Cost of Children: Differences between the Genders
Abstract: In this paper we estimate the opportunity cost of
children. The underlying theoretical model is represented by a household
production model. In the empirical analysis, we consider three different
cohorts for men and women born between 1955 and 1970. For the women in the
two oldest cohorts, the opportunity cost of two children is estimated to
28-29 per cent of full income, which in monetary terms is close to the
estimated income difference between women employed in the public and
private sector. The opportunity cost of fatherhood is generally positive,
but only significantly positive for men born between 1960 and 1965.
Keywords: Children; parenthood; opportunity cost; income loss; (follow links to similar papers)
JEL-Codes: D13; J13; (follow links to similar papers)
35 pages, October 16, 2009
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