Households experience constraints around the use of total resources and must consider the cost of time when allocating their resources to maximize utility. When earnings increase, the relative cost of time also increases. This leads households to allocate more time to the workforce and outsource household tasks, such as childcare. The purpose of this research is to understand better the decisions married couples with young children make with their use of time and its impact on savings rates. Using data from the Panel Study of Income Dynamics (2021) this study provides information that will help couples with children make informed decisions about their allocation of time between household production and workforce labor.
