The time and timing costs of market work
By: Daniel S. Hamermesh, Stephen Donald.
Contributors: Donald, Stephen G.; National Bureau of Economic Research.
Series: NBER working paper series -- no. 13127.; Working paper series (National Bureau of Economic Research) -- working paper no. 13127.
Publisher: National Bureau of Economic Research
Published: 2007
Place of publication: Cambridge, Mass
Language: eng
Number of pages: 25
Subjects: American Time Use Survey; Time management -- Mathematical models; Time management -- Economic aspects -- United States; Time management -- Economic aspects -- Australia; Time management -- Economic aspects -- Germany; Time management -- Economic aspects -- Netherlands
Description: "With the American Time Use Survey of 2003 and 2004 we first examine whether additional market work has neutral impacts on the mix of non-market activities. The estimates indicate that fixed time costs of market work alter patterns of non-market activities, reducing leisure time and mostly increasing time devoted to household production. Similar results are found using time-diary data for Australia, Germany and the Netherlands. Direct estimates of the utility derived from goods consumption and two types of non-market time in the presence of these fixed costs indicate that they generate a utility-equivalent of as much as 8 percent of income that must be overcome before market work becomes an optimizing choice. Market work also alters the timing of a fixed amount of non-market activities during the day, away from the schedule chosen when market work imposes no timing constraints. All of these effects are mitigated by higher family income. The results provide a new supply-side explanation for the frequently observed discrete drop from full-time work to complete retirement."
Notes: "May 2007"

Includes bibliographical references (p. 24-25).

Also available in PDF from the NBER world wide web site (www.nber.org).