The value of a stay-home parent
Reynolds, Kevin (Student of economics)
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How do increasing levels of education affect parents’ decisions to stay home with their children? When children are born parents make the decision to stay home and raise them or to continue at their jobs in the labor force. Parents need to be informed to make the best choice for their family. The choice to stay home with the children or work in the labor market is based on the perceived value a family puts on a parent staying home. Some of the duties of a typical stay-home parent include cooking, cleaning, laundering, childcare, and driving. Using three levels of education including high school, college, and professional school graduates an income will be established that parents may use to determine whether or not they should stay home. Opportunity cost, market equivalents of services, and reservation wage will all be used to determine at what level parents will stay home. Financially, if a parent makes more than the average salary of someone performing the average household tasks, they should choose to enter the labor force once again. Otherwise it is beneficial to stay home and raise the child and forgo the potential market wage.