Unemployment, Market Work and Household Production

21 Pages Posted: 25 Jan 2009 Last revised: 8 Aug 2022

See all articles by Michael C. Burda

Michael C. Burda

Humboldt University of Berlin - Faculty of Economics; Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute); IZA Institute of Labor Economics

Daniel S. Hamermesh

University of Texas at Austin - Department of Economics; National Bureau of Economic Research (NBER); IZA Institute of Labor Economics

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Date Written: January 2009

Abstract

Using time-diary data from four countries we show that the unemployed spend most of the time not working for pay in additional leisure and personal maintenance, not in increased household production. There is no relation between unemployment duration and the split of time between household production and leisure. U.S. data for 2003-2006 show that almost none of the lower amount of market work in areas of long-term high unemployment is offset by additional household production. In contrast, in those areas where unemployment has risen cyclically reduced market work is made up almost entirely by additional time spent in household production.

Suggested Citation

Burda, Michael C. and Hamermesh, Daniel S., Unemployment, Market Work and Household Production (January 2009). NBER Working Paper No. w14676, Available at SSRN: https://ssrn.com/abstract=1332615

Michael C. Burda

Humboldt University of Berlin - Faculty of Economics ( email )

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