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VALUING LOST HOME PRODUCTION OF DUAL EARNER COUPLES *
Author(s) -
House Christopher,
Laitner John,
Stolyarov Dmitriy
Publication year - 2008
Publication title -
international economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.658
H-Index - 86
eISSN - 1468-2354
pISSN - 0020-6598
DOI - 10.1111/j.1468-2354.2008.00495.x
Subject(s) - nonmarket forces , economics , earnings , production (economics) , labour economics , value (mathematics) , dual (grammatical number) , work (physics) , health and retirement study , demographic economics , microeconomics , finance , factor market , medicine , mathematics , mechanical engineering , art , gerontology , statistics , literature , engineering
Using a life‐cycle model in which women divide their time between home and market work, we establish a link between retirement wealth and the value of forgone home production. We use data from the Health and Retirement Study to estimate the model's parameters and adjust the growth rate of GDP to reflect reductions in nonmarket output. We find that the value of forgone home production is modest—about 25% of women's measured earnings.