Abstract
This paper first identifies the determinants of spouses’ satisfaction levels within the household with respect to their leisure time and, secondly, characterizes whether their preferences have some degree of altruistic or egoistic character in regard to this particular satisfaction. To that end, it formulates a theoretical framework from the collective family model whose stochastic formulations are estimated for 14 EU countries. The general empirical results first reveal that the presence of children has a significantly negative impact on the leisure satisfaction of both spouses. Then, increases in individual incomes lead to lower own leisure satisfaction levels. Both husbands and wives show egoistic behavior with respect to the labor and non-labor incomes (wage rate) of their respective spouses’ satisfaction levels.
Similar content being viewed by others
Notes
A particular case of this general situation appears when preferences are egoistic; that is to say, where individual utility depends on the individual’s own income or leisure.
Early attempts in the literature to account for the fact that households may consist of different individuals with their own preferences are those of Samuelson (1956) and Becker (1974a, 1974b). However, in both cases, the authors accepted the traditional approach: In the first case, through an aggregation utility function which is achieved by consensus among individuals; and, in the second, by assuming the utility function of a benevolent head of the family, who takes into account the preferences of all household members.
As we said earlier, our objective is to study the sign of the total effects, without considering the different components into which these can be broken down.
The ECHP is an extensive, sample-based panel survey in which the same households and individuals are interviewed annually. The data come from a standardized questionnaire and are designed to be cross-nationally comparable (Peracchi 2002).
Given the ordinal nature of the dependent variable on individual satisfaction, an appropriate regression model would be an ordered probit. However, while the random-effects ordered probit model is available in standard statistical software packages (Ferrer-i-Carbonell and Van Praag 2003; Schwarze 2004; Winkelmann 2005), the fixed-effects ordered probit estimator is not. This is why the present paper uses as approximations both random-effects and fixed-effects regression models, which are perfectly comparable by using habitual tests (D’Ambrosio and Frick 2004; Ferrer-i-Carbonell and Frijters 2004).
The recent work by Baltagi et al. (2003) provides information on the suitability of the Hausman–Taylor procedure in a general framework, where panel data are available and some regressors are correlated with the individual effects.
The 8.0 version of Stata includes the Hausman–Taylor procedure and is used to obtain the estimates presented in this paper.
References
Ahn, N., & García, J. R. (2004). Job satisfaction in Europe. Documento de Trabajo 2004–16, FEDEA.
Altonji, J. G., Hayashi, F., & Kotlijoff, L. J. (1992). Is the extended family altruistically linked? Direct tests using micro data. American Economic Review, 82, 1177–1198.
Arnold, J. E., & Lang, U. A. (2007). Changing American home life: Trends in domestic leisure and storage among middle-class families. Journal of Family and Economic Issues, 28, 23–48.
Baltagi, B. H., Bresson, G., & Pirotte, A. (2003). Fixed effects, random effects or Hausman-Taylor? A pretest estimator. Economics Letters, 79, 361–369.
Becker, G. S. (1974a). A theory of marriage: Part II. Journal of Political Economy, 82, S11–S26.
Becker, G. S. (1974b). A theory of social interactions. Journal of Political Economy, 82, 1063–1093.
Becker, G. S. (1991). A treatise on the family. Cambridge: Harvard University Press.
Boes, S., & Winkelmann, R. (2004). Income and happiness: New results from generalized threshold and sequential models. Discussion Paper 1175. Bonn, Germany: Institute for the Study of Labor (IZA).
Bonke, J., & Browning, M. (2003). The distribution of well-being and income within the household. Working Paper, Center for Applied Microeconometrics. Copenhagen, Denmark: University of Copenhagen.
Browning, M., & Chiappori, P-A. (1998). Efficient intra-household allocations: A general characterization and empirical tests. Econometrica, 66, 1241–1278.
Chiappori, P-A. (1988). Rational household labor supply. Econometrica, 56, 63–89.
Chiappori, P-A. (1992). Collective labour supply and welfare. Journal of Political Economy, 100, 437–467.
Chiappori, P-A., Fortin, B., & Lacroix, G. (2002). Divorce legislation and household labor supply. Journal of Political Economy, 110, 37–71.
Clark, A. E. (1999). Are wages habit-forming? Evidence from micro data. Journal of Economic Behavior and Organization, 39, 179–200.
Clark, A. E., Etilé, F., Postel-Vinay, F., Senik, C., & Van der Straeten, K. (2004). Heterogeneity in reported well-being: Evidence from twelve European countries. Economic Journal, 115, C118–C132.
Clark, A. E., & Oswald, A. J. (1994). Unhappiness and unemployment. Economic Journal, 104, 648–659.
Clark, A. E., & Oswald, A. J. (1996). Satisfaction and comparison income. Journal of Public Economics, 61, 359–381.
Clark, A. E., & Oswald, A. J. (2002). A simple statistical method for measuring how life events affect happiness. International Journal of Epidemiology, 31, 1139–1144.
D’Ambrosio, C., & Frick, J. R. (2004). Subjective well-being and relative deprivation: An empirical link. Discussion Paper 1351. Bonn, Germany: Institute for the Study of Labor (IZA).
Diener, E., Gohm, C. L., Suh, E. M., & Oishi, S. (2000). Similarity of the relation between marital status and subjective well-being across countries. Journal of Cross-Cultural Psychology, 31, 419–436.
Diener, E., Suh, E. M., Lucas, R. E., & Smith, H. L. (1999). Subjective well-being: Three decades of progress. Psychological Bulletin, 125, 276–303.
Easterlin, R. A. (2002). Happiness in economics. Cheltenham: Edward Elgar.
Elliott, M. (2003). Work and family role strain among university employees. Journal of Family and Economic Issues, 24, 157–181.
Fernández-Val, I. (2005). Estimation of structural parameters and marginal effects in binary choice panel data models with fixed effects. Job Market Paper. Cambridge, MA: MIT Department of Economics.
Ferrer-i-Carbonell, A., & Frijters, P. (2004). How important is methodology for the estimates of the determinant of happiness? Economic Journal, 114, 641–659.
Ferrer-i-Carbonell, A., & Van Praag, B. (2003). Income satisfaction inequality and its causes. The Journal of Economic Inequality, 1, 107–127.
Frey, B. S., & Stutzer, A. (2001). Happiness and economics: How the economy and institutions affect human well-being. Princeton: Princeton University Press.
Groot, W., & Maassen van den Brink, H. (1999). Job satisfaction of older workers. International Journal of Manpower, 20, 343–360.
Groot, W., & Maassen van den Brink, H. (2002). Age and education differences in marriages and their effects on life satisfaction. Journal of Happiness Studies, 3, 153–165.
Grund, C., & Sliwka, D. (2001). The impact of wages increases on job satisfaction-empirical evidence and theoretical implications. Discussion Paper 387. Bonn, Germany: Institute for the Study of Labor (IZA).
Hamermesh, D. S. (2004). Subjective outcomes in economics. Working Paper 10361. Cambridge, MA: National Bureau of Economic Research.
Hausman, J. A. (1978). Specification tests in econometrics. Econometrica, 50, 749–759.
Hausman, J. A., & Taylor, W. E. (1981). Panel data and unobservable individual effects. Econometrica, 49, 1377–1398.
Joo, S-H., & Grable, J. E. (2004). An exploratory framework of the determinants of financial satisfaction. Journal of Family and Economic Issues, 25, 25–50.
Kahneman, D., Diener, E., & Schwarz, N. (1999) Well-being: The foundations of hedonic psychology. New York: Russell Sage Foundation.
Lee, G. R., Seccombe, K., & Shehan, C. L. (1991). Marital status and personal happiness: An analysis of trend data. Journal of Marriage and the Family, 53, 839–844.
Linz, S. (2003). Job satisfaction among Russian workers. International Journal of Manpower, 24, 626–652.
Lo Wa Tsang, L., Harvey, C. D. H., Duncan, K. A., & Sommer, R. (2003). The effects of children, dual earner status, sex role traditionalism, and marital structure on marital happiness over time. Journal of Family and Economic Issues, 24, 5–26.
MacDonald, M., & Koh, S. (2003). Consistent motives for inter-family transfers: Simple altruism. Journal of Family and Economic Issues, 24, 73–97.
McCullough, J., & Zick, C. D. (1992). The roles of role strain, economic resources and time demands in explaining mothers’ life satisfaction. Journal of Family and Economic Issues, 13, 23–44.
Oswald, A. J. (1997). Happiness and economic performance. Economic Journal, 107, 1815–1831.
Peracchi, F. (2002). The European community household panel: A review. Empirical Economics, 27, 63–90.
Powdthavee, N. (2004a). Testing for utility interdependence in marriage: Evidence from panel data. The Warwick Economics Research Paper Series 750. Warwick, UK: University of Warwick.
Powdthavee, N. (2004b). Mental risk-sharing in marriage: Evidence from panel data. The Warwick Economics Research Paper Serieds 798. Warwick, UK: University of Warwick.
Roehling, P. V., Roehling, M. V., & Moen. P. (2001). The relationship between work-life policies and practices and employee loyalty: A life course perspective. Journal of Family and Economic Issues, 22, 141–170.
Samuelson, P. (1956). Social indifference curves. The Quarterly Journal of Economics, 70, 1–22.
Schwarze, J. (2004). Living conditions of children and parental well-being: evidence from German data on life satisfaction. Discussion Paper 1200. Bonn, Germany: Institute for the Study of Labor (IZA).
Schwarze, J., & Winkelmann, R. (2005). What can happiness research tell us about altruism? Evidence from the German Socio-Economic Panel. Discussion Paper 1487. Bonn, Germany: Institute for the Study of Labor (IZA).
Senik, C. (2004). Relativizing relative income. Working Paper 2004–17. Paris, France: Département et Laboratoire d’Économic Théorique Appliquée (DELTA).
Swanberg, J. E. (2005). Job-family role strain among low-wage workers. Journal of Family and Economic Issues, 26, 143–158.
White-Means, S., & Chang, C. F. (1994). Informal caregivers’ leisure time and stress. Journal of Family and Economic Issues, 15, 117–136.
Winkelmann, R. (2005). Subjective well-being and the family: Results from an ordered probit model with multiple random effects. Empirical Economics, 30, 749–761.
Wooldridge, J. M. (2002). Econometric analysis of cross-section and panel data. Cambridge, MA: MIT Press.
Yin, X. (2005). New trends of leisure consumption in China. Journal of Family and Economic Issues, 26, 175–182.
Acknowledgements
First, the authors wish to express their thanks to Professor Xiao and two anonymous referees for their helpful comments on an earlier version of this paper. This paper was partially written while José Alberto Molina was Visiting Fellow at the Department of Economics of the University of Warwick (UK), to which he would like to express his thanks for the hospitality and facilities provided. Finally, the authors would like to express their thanks for the financial support provided by the Spanish Ministry of Education and Science and FEDER (Projects SEC2002-01350 and SEJ2005-06522), the Government of Aragon (B168/2003) and by the BBVA Foundation.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
García, I., Molina, J.A. & Navarro, M. How Satisfied are Spouses with their Leisure Time? Evidence from Europe. J Fam Econ Iss 28, 546–565 (2007). https://doi.org/10.1007/s10834-007-9082-7
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10834-007-9082-7