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The welfare impact of implicit income generated from childcare in home‐based employment
Author(s) -
FAN JESSIE X.
Publication year - 1997
Publication title -
journal of consumer studies and home economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.775
H-Index - 71
eISSN - 1470-6431
pISSN - 0309-3891
DOI - 10.1111/j.1470-6431.1997.tb00280.x
Subject(s) - welfare , economics , labour economics , order (exchange) , demographic economics , point (geometry) , working hours , child care , low income , variation (astronomy) , business , finance , medicine , geometry , mathematics , pediatrics , market economy , physics , astrophysics
For households that take care of their children when working at home, the income earned from home‐based employment is twofold. While visible money income is generated from the paid employment, there is a certain amount of invisible income generated from performing childcare at the same time. The purpose of this study was to estimate the invisible income generated from performing childcare when working at home, and its impact on household welfare change at both micro and macro levels. The results show that in 1988, for a typical home‐based worker who took care of his/her children when working at home, the Hicksian compensating and the Hicksian equivalent variation were about $2564·53 and $1651·87 respectively. At the aggregate level, for the nine states included in this study, a point estimate of the total Hicksian equivalent variation was about 80·5 million. This means, if these households could not take care of their children when working, 80·5 million dollars would need to be given to them in order to keep them as well off.