Market Labor, Household Work and Schooling in South Africa

Modeling the Effects of Trade on Adults’ and Children’s Time Allocation

Abstract

This paper analyzes how economic policies can influence parents’ decisions about their children’s schooling, household work and leisure in South Africa. Using a dynamic computable general equilibrium model that integrates both market and non-market activities, distinguishing male and female workers on the one hand, and adult and child non-market work and leisure on the other, we find that, in the context of trade liberalization, gender inequality is likely to rise between adults and between boys and girls. Furthermore, the paper notes that the increase in adult male and female market labor supply is made possible through the substitution of children for parents in household work , although more so in some groups than others. These effects sustain in the long run.