IDEAS home Printed from https://ideas.repec.org/p/zbw/vfsc14/100366.html
   My bibliography  Save this paper

Daddy Months

Author

Listed:
  • Meier, Volker
  • Rainer, Helmut

Abstract

We consider a bargaining model in which husband and wife decide on the allocation of time and disposable income. Since her bargaining power would go down otherwise more strongly, the wife agrees to having a child only if the husband also leaves the labor market for a while. The daddy months subsidy enables the couple to overcome a hold-up problem and thereby improves efficiency. However, the same ruling harms cooperative couples and may also reduce welfare in an endogenous taxation framework.

Suggested Citation

  • Meier, Volker & Rainer, Helmut, 2014. "Daddy Months," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100366, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc14:100366
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/100366/1/VfS_2014_pid_84.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Rubinstein, Ariel, 1982. "Perfect Equilibrium in a Bargaining Model," Econometrica, Econometric Society, vol. 50(1), pages 97-109, January.
    2. Ken Binmore & Ariel Rubinstein & Asher Wolinsky, 1986. "The Nash Bargaining Solution in Economic Modelling," RAND Journal of Economics, The RAND Corporation, vol. 17(2), pages 176-188, Summer.
    3. Iyigun, Murat & Walsh, Randall P., 2007. "Endogenous gender power, household labor supply and the demographic transition," Journal of Development Economics, Elsevier, vol. 82(1), pages 138-155, January.
    4. Bergstrom, Ted & Blomquist, Soren, 1996. "The political economy of subsidized day care," European Journal of Political Economy, Elsevier, vol. 12(3), pages 443-457, November.
    5. Cigno, Alessandro, 1993. "Intergenerational transfers without altruism : Family, market and state," European Journal of Political Economy, Elsevier, vol. 9(4), pages 505-518, November.
    6. Kai A. Konrad & Kjell Erik Lommerud, 2000. "The bargaining family revisited," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 33(2), pages 471-487, May.
    7. Sören Blomquist & Vidar Christiansen & Luca Micheletto, 2010. "Public Provision of Private Goods and Nondistortionary Marginal Tax Rates," American Economic Journal: Economic Policy, American Economic Association, vol. 2(2), pages 1-27, May.
    8. Becker, Gary S, 1985. "Human Capital, Effort, and the Sexual Division of Labor," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages 33-58, January.
    9. Sinn, Hans-Werner, 1997. "The Value of Children and Immigrants in a Pay-As-You-Go Pension System: A Proposal For a Partial Transition to a Funded System," CEPR Discussion Papers 1734, C.E.P.R. Discussion Papers.
    10. Borck, Rainald & Wrohlich, Katharina, 2011. "Preferences for childcare policies: Theory and evidence," European Journal of Political Economy, Elsevier, vol. 27(3), pages 436-454, September.
    11. Patricia Apps & Ray Rees, 2004. "Fertility, Taxation and Family Policy," Scandinavian Journal of Economics, Wiley Blackwell, vol. 106(4), pages 745-763, December.
    12. James W. Albrecht & Per-Anders Edin & Marianne Sundström & Susan B. Vroman, 1999. "Career Interruptions and Subsequent Earnings: A Reexamination Using Swedish Data," Journal of Human Resources, University of Wisconsin Press, vol. 34(2), pages 294-311.
    13. Alexander Kemnitz & Marcel Thum, 2015. "Gender Power, Fertility, and Family Policy," Scandinavian Journal of Economics, Wiley Blackwell, vol. 117(1), pages 220-247, January.
    14. Kaushik Basu, 2006. "Gender and Say: a Model of Household Behaviour with Endogenously Determined Balance of Power," Economic Journal, Royal Economic Society, vol. 116(511), pages 558-580, April.
    15. Christopher J. Ruhm, 1998. "The Economic Consequences of Parental Leave Mandates: Lessons from Europe," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 113(1), pages 285-317.
    16. Ekberg, John & Eriksson, Rickard & Friebel, Guido, 2013. "Parental leave — A policy evaluation of the Swedish “Daddy-Month” reform," Journal of Public Economics, Elsevier, vol. 97(C), pages 131-143.
    17. Marianne Bertrand & Claudia Goldin & Lawrence F. Katz, 2010. "Dynamics of the Gender Gap for Young Professionals in the Financial and Corporate Sectors," American Economic Journal: Applied Economics, American Economic Association, vol. 2(3), pages 228-255, July.
    18. Lommerud, Kjell Erik, 1989. "Marital Division of Labor with Risk of Divorce: The Role of "Voice" Enforcement of Contracts," Journal of Labor Economics, University of Chicago Press, vol. 7(1), pages 113-127, January.
    19. Blundell,R. W. & Preston,Ian & Walker,Ian (ed.), 1994. "The Measurement of Household Welfare," Cambridge Books, Cambridge University Press, number 9780521451956, September.
    20. Imran Rasul, 2006. "The Economics of Child Custody," Economica, London School of Economics and Political Science, vol. 73(289), pages 1-25, February.
    21. repec:bla:scandj:v:97:y:1995:i:4:p:581-601 is not listed on IDEAS
    22. Mari Rege & Ingeborg Solli, 2013. "The Impact of Paternity Leave on Fathers’ Future Earnings," Demography, Springer;Population Association of America (PAA), vol. 50(6), pages 2255-2277, December.
    23. Esther Geisler & Michaela R. Kreyenfeld, 2012. "How policy matters: Germany’s parental leave benefit reform and fathers’ behavior 1999-2009," MPIDR Working Papers WP-2012-021, Max Planck Institute for Demographic Research, Rostock, Germany.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Michael Ahlheim & Stefan Bruckmeyer & Kai A. Konrad & Lisa Windsteiger, 2020. "Verlorenes Glück — Zufriedenheitsverluste in der Corona-Krise [Lost Happiness — Loss of Life Satisfaction in the Corona Crisis]," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 100(8), pages 586-590, August.
    2. Ulrike Unterhofer & Katharina Wrohlich, 2017. "Fathers, Parental Leave and Gender Norms," Discussion Papers of DIW Berlin 1657, DIW Berlin, German Institute for Economic Research.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Xu, Zeyu, 2007. "A survey on intra-household models and evidence," MPRA Paper 3763, University Library of Munich, Germany.
    2. Johnsen, Julian & Ku, Hyejin, 2020. "Competition and Career Advancement: The Hidden Costs of Paid Leave," Discussion Paper Series in Economics 13/2020, Norwegian School of Economics, Department of Economics.
    3. Alexander Kemnitz & Marcel Thum, 2015. "Gender Power, Fertility, and Family Policy," Scandinavian Journal of Economics, Wiley Blackwell, vol. 117(1), pages 220-247, January.
    4. Gerhard Glomm & Volker Meier, 2020. "Efficient child care subsidies: any need for cash for care?," Review of Economics of the Household, Springer, vol. 18(3), pages 773-793, September.
    5. Volker Meier & Matthew D. Rablen, 2024. "Political economy of redistribution between traditional and modern families," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 31(4), pages 980-1008, August.
    6. Karimi, Arizo & Lindahl, Erica & Skogman Thoursie, Peter, 2012. "Labour supply responses to paid parental leave," Working Paper Series 2012:22, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    7. Libertad González Luna & Lidia Farré, 2017. "The effects of paternity leave on fertility and labor market outcomes," Economics Working Papers 1572, Department of Economics and Business, Universitat Pompeu Fabra.
    8. Persson, Petra & Rossin-Slater, Maya, 2019. "When Dad Can Stay Home: Fathers' Workplace Flexibility and Maternal Health," IZA Discussion Papers 12386, Institute of Labor Economics (IZA).
    9. Wang, Ruiting & Xu, Gang, 2020. "Can child allowances improve fertility in a gender discrimination economy?," Economic Modelling, Elsevier, vol. 93(C), pages 162-174.
    10. Akira Yakita, 2018. "Fertility and education decisions and child-care policy effects in a Nash-bargaining family model," Journal of Population Economics, Springer;European Society for Population Economics, vol. 31(4), pages 1177-1201, October.
    11. Gerhard Glomm & Volker Meier, 2016. "Modes of Child Care," CESifo Working Paper Series 6287, CESifo.
    12. Mizuki Komura, 2013. "Fertility and endogenous gender bargaining power," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(3), pages 943-961, July.
    13. Abrahamsen, Signe A., 2018. "Paternity Leave and Family Outcomes," Working Papers in Economics 13/18, University of Bergen, Department of Economics.
    14. Choi, Youjin & Holm, Anders & Margolis, Rachel, 2019. "The Effects of Paternity Leave on Parents’ Earnings Trajectories and Earnings Inequality," SocArXiv tx2vh, Center for Open Science.
    15. Donni, Olivier & Molina, José Alberto, 2018. "Household Collective Models: Three Decades of Theoretical Contributions and Empirical Evidence," IZA Discussion Papers 11915, Institute of Labor Economics (IZA).
    16. Anderberg, Dan & Rainer, Helmut & Roeder, Kerstin, 2018. "Family-specific investments and divorce with dynamically inconsistent households: Marital contracts and policy," Journal of Economic Behavior & Organization, Elsevier, vol. 148(C), pages 199-225.
    17. Hanming Fang & Peter Norman, 2014. "Toward an efficiency rationale for the public provision of private goods," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 56(2), pages 375-408, June.
    18. C. Spiess & Katharina Wrohlich, 2008. "The Parental Leave Benefit Reform in Germany: Costs and Labour Market Outcomes of Moving towards the Nordic Model," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 27(5), pages 575-591, October.
    19. Nguyen Thang Dao & Julio Dávila & Angela Greulich, 2021. "The education gender gap and the demographic transition in developing countries," Journal of Population Economics, Springer;European Society for Population Economics, vol. 34(2), pages 431-474, April.
    20. Molina, José Alberto & Montuenga, Víctor M., 2008. "The Motherhood Wage Penalty in a Mediterranean Country: The Case of Spain," IZA Discussion Papers 3574, Institute of Labor Economics (IZA).

    More about this item

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:vfsc14:100366. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/vfsocea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.