1. The Leisure Experience: On the nature of leisure time Victoria Ateca Amestoy Universidad del País Vasco Instituto de Estudios Sociales Avanzados de Andalucía (IESA-CSIC) XX Simposio de Análisis Económico – Universidad de Murcia, Diciembre 2005

2. The Leisure Experience: me and the others Victoria M. Ateca Amestoy, Esperanza Vera-Toscano & Rafael Serrano-del-Rosal Instituto de Estudios Sociales Avanzados de Andalucía (IESA-CSIC) IESA WORKING PAPER 1204 On the nature of leisure time Work-in-progress Presentation: outline

3. Subjetive Well-being (Frey & Stutzer, JEL 2002; Ferrer-i-Carbonell & Van-Praag, OUP 2004) Study the difference among satisfaction derived from a given situation (leisure experience), and satisfaction with an available resource (leisure time) Satisfaction with a life domain and with the resource in which that commodity is intensive Conceptually 1.Basic needs and tastes 2.Satisfy basic needs by means of the production and consumption of commodities 3.Commodities are produced by the combination of personal resources 4.Utility derived by the consumption of commodities

4. Capture heterogeneity on leisure experience: Boundaries of the definition ( personal tastes ): What is leisure? What is discretional and pleasant Resource availability and skills: private material resources, immaterial (relations), public resources Valuation / differences: aspirations, past experiences Determine how leisure satisfaction is built through an analytic approach: the valuation of leisure experience. Explore the determinants of leisure satisfaction Objectives

5. A 2 layers model: Halpern & Donovan : –How relevant is leisure satisfaction in determining overall hapiness? –General results on leisure satisfaction (+.4, +.2) Evidence in our data (+.39, +.17) Pratt indexes in brackets – correlation and partial correlation coefficients Individual behaviour framework XX Job Satisfaction Job Satisfaction (0.0007) Financial Satisfaction (0.639) Satisfaction Housing Satisfaction (0.198) Satisfaction Health Satisfaction (0.072) Leisure Satisfaction (0.056) Satisfaction Environmental Satisfaction (0.031) HAPPINESS General Satisfaction

6. Basic commodities Becker, G.S., (1965) Household production functions: production and consumption of commodities that fulfill human basic needs. Individual/family acts as a factory combining market goods and time. Leisure production: individual combines resources, time and market goods Limits between categories: cook a meal, go to the park with the children Gronau, R. & Hamermesh, D., (2003) - Arbitrary list of commodities »Sleep »Lodging »Appearance »Eating »Childcare »Health »Travel »LEISURE (The most time-intensive ) »Miscellaneous Leisure time Residual time? No, discretional

7. Commodity production function and consumer’s problem Leisure experience production function Household maintenance production function Total income constraint

8. The dataset is derived from the Survey on Living Conditions and Poverty in Andalucía. surface: 87.268 km 2 ; population 7.829.202 (Jan.2005) Household survey designed and conducted in 2003 by the Institute of Advanced Social Studies (IESA-CSIC) in Spain with funding from the Department of Social Affairs of the Andalucian Regional Government. The target population: all people living in Andalucía aged 18 and over to capture the well being of individuals and households Representative sample of approx. 6000 households. Overall 6393 respondents, providing information on a total of around 21 000 individuals. The sample is drawn using a stratified, multi-stage design, using probability sampling. The principal stratification: by poverty levels, gender and age. Primary sampling units: selected in different ways depending upon the relevant size of municipalities combined with census units. Description of the Survey

9. a.Information on housing conditions (area and dewling). b.General demographic and socio-economic variables: educational, sources of income, health status and occupation information on each household member. c.Health and social problems; social services usage. d.Income for each member, financial situation. e.Subjective variables on social situation, political variables, evaluation of public performance, social capital and satisfaction with life domains. Description of the dataset

10. E11_1: Overall life (1-7 scale) E11_2: Family E11_3: Financial E11_4: Andalusian Government action E11_5: Personal happiness E11_6: Housing E11_7: Children realtionship E11_8: City Hall action E11_9: Leisure E11_10: National Government action E11_11: Purchasing capacity E11_12: Public services quality E11_13: Health status E11_14: Current job E11_15: Neighbourhood E11_16: Environmental quality E11_17: Friends relationships E12: Life opinion Overview of the satisfaction variables

11. Variables from Survey on Living Conditions and Poverty The variable that we want to explain: leisure satisfaction Z 1 Explanatory variables –Variables related to productive factors: Related to time devoted to the production of leisure experience t l Related to goods and time available –Variables that work as technological constraints in the production function –Variables that influence valuation Functional form –Subjective personal –Objective personal –Socio-economics –Household composition –Personal social capital –Environmental characteristics

12. Hypotheses and regularities Variables that affect - optimal allocation subject to the time constraint –Occupation –Household composition Number of children Number of adults Elderly Handicapped Variables that affect x – optimal allocation of private goods and services –Household income –Leisure expenditure capacity –Non basic goods Health status (affecting both, potentially) Sociability: –Contacts with known people –Participation in association –Household type and marital status Individual heterogeneity sources: –Age –Sex –Subjective Social Class Environmental constraints and conditions (supply side arguments) –Type of habitat (population size)

13. Demographic age (U) Subjetive Health status (+) Subjetive social class (+) Household composition Nº of dependent people (-) Household type and marital status (+) Socio-economics Occupation (-) Durables (+) Leisure expenditure capacity (+) Habitat Semi-urban (-) Social capital Contacts with friends and known people (+) Results Significant variables in the estimation of the ordered probit model for leisure satisfaction Encuesta de Condiciones de Vida y Pobreza en Andalucía -(IESA-CSIC, 2003)

14. Variables from European Community Household Panel: ECHP Dependent variable: satisfaction with leisure time Explantory variables: –Variables related with the amount of leisure time t l Time devoted to work in the market (number of hours and occupation) Time related to housing activities (hours for dependent people care) –Variables determining the valuation. –Variables related with other factors (complements o substitutes) for the fulfillment and production of leisure experience. Functional form –Subjetive personal variables –Objetive personal –Socio-economic –Household composition –Personal Social Capital * (“Hours worked “and ”household income” are introduced both in level and differences in the empirical specification) *

15. Demographic age (U) (U) sex (hombres) (mujeres) Subjetive health status (+) (+) Household composition Marital status (solteros) Dependient: hours (-) (-) Socio-economic Occupation (full-time employees) (idem) Hours worked (+ level & change) (idem) Income (+ level) n.a. Leisure expenditure capacity (+) (+) Social capital Contacts with relatives (+) (+) Contacts with friends (+) (+) Participation in associeations (+) (+) Results from ECHP Significant variables: estimation of a random effect model using OLS for satisfaction with leisure time –EUROPEAN COMMUNITY HOUSEHOLD PANEL – WAVES 7 & 8 (Europe/Spain)

16. Results and conclusions 1. Individual leisure behavior model (leisure is life domain that conforms overall happiness) -Control for individual heterogeneity in satisfaction variability. 2. Leisure experience: modeled as a commodity, is a subjective and unobservable variable. 3. Leisure time: modeled as a productive resource 4. Results derived form the analysis * Andalucía (Condiciones de Vida y Pobreza – IESA-CSIC, 2003) * European Community Household Panel -relevance of social capital The presence of other people in the narrowest environment increases leisure satisfaction. However, only informal social capital is relevant in Andalucía. 5. Possibly, some supply conditions induce corner solutions - indivisibility of time resource.

17. Tabla IIb. Sample statistics – LEISURE SATISFACTION MODEL

18. Tabla IIb. Sample statistics - LEISURE SATISFACTION MODEL (cont)