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The major purpose of this paper is to discuss the decision of the time allocation of small families in Taiwan. The major differences of our study from previous ones include: (1) The data source: Owing the lack of available data, we merge the 1987 Men Power Utilization (MPU) survey and Time Utilization (TU) survey. (2) Econemetric methodology: We establish a two-regime switching regression model to consider the sample selection bias and we use the seemingly unrelated regression (SUR) model to estimate the time allocation function. (3) Time-use contents: We follow the traditional analysis and analyze the allocation of time for market work, housework and leisure. In addition, we apply a disaggregated analysis and consider the time use of sleeping, TV-watching, social activities, reading, and so on. The empirical results show that the main explanatory variables for time allocation include the wage rate, education, living area, age and the existence of preschool kids. All these explanatory variables have the impacts in line with the predictions of our theory and previous researches. An interesting finding is that, for a wife without work, her time utilization decision will be influenced by her husband''s traits only. However, for a couple with the wife working, the couples'' time utilization will be influenced by each other''s traits. It seems that a wife''s labor market participation status plays a critical role in the determinants of bargaining power of husbands and wives in the families.
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