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dinqey

Economic question…need help badly… gimme some pointers on how to do it…?

Assume that in a household one parent currently works full time and the other stays at home to look after the family. How would u set about identifying and calculating the opprtunity costs of the second parent now taking a fulltime job? how would such calculations be relevant in deciding whether it is worth taking that job?

Top 4 Answers
MarianasTrench

Favorite Answer

I agree with can_prof. In addition to identifying and calculating maid, babysitting/nanny services… you should also include additional transportation costs to and from work, additional car and related cost (insurance, parking), lunch/lattes/other food, new outfits (suits or uniforms, shoes, make-up), etc. Just think of things that the spouse would need or use to go to work and put some value on that item, then use that to off-set if he/she stays home.

What you may add and get some extra points are… some intangibles such as familial responsibilities, less time with children, missing their 1st this and that, shame other pressures brought in from in-laws, church/synagogue, etc. I truly believe that these additional costs though not easily calculated nor easily placed a certain value IS valuable and very important to the family as well as the society. Take care and good luck. Make your mama proud.

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CanProf
You would need to compute things like child care costs (depending on the ages of the children) and possibly other housework costs which might be purchased rather than provided by the family member, e.g. Molly Maids, take-out meals.
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4 years ago
Anonymous
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soñador
Well, if you need the money you won’t need a calculator, common sense should tell you what to do.
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