Working Paper: NBER ID: w4386
Authors: Tadashi Yamada; Tetsuji Yamada
Abstract: Our study shows that the household production theory illuminates the behavior of households in the allocation of time and consumption expenditures. Among the noteworthy findings derived from our data, the various household non-market time allocations (consequently, market labor supply) cannot be separated from consumption expenditures. An increase in market wage rates for both young and elderly households reduces their time spent on household nonmarket activities, such as child care, medical care, and listening to the radio and watching TV. The high opportunity costs of waiting at the hospital clearly discourage working people from visiting the hospital. These results show not a few similarities between the household non-market time allocation in Japan and that to be found in the U.S.
Keywords: Time Allocation; Household Production; Economic Incentives; Japan
JEL Codes: J22; J13
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Increase in market wage rates (J39) | Reduction in time spent on household nonmarket activities (D13) |
| Higher opportunity costs associated with waiting at hospitals (I11) | Discouragement of working individuals from visiting hospitals (I11) |
| Differences in medical care time allocation between males in and out of the labor market (J29) | Differences in behavior regarding medical care (I11) |