Labor Supply of Husbands and Wives: A Simultaneous Equations Approach
نویسنده
چکیده
Labor supply functions for married men and women are formulated as a dynamic simultaneous equations ystem, which is estimated using panel data. Controlling for fixed individual effects allows marginal labor supply responses to be disentangled from permanent patterns in hours worked ue to assortative mating. The results suggest hat the labor supply of husbands and wives without pre-school children isnot jointly determined inthe short run, while families with young children exhibit strong interactions inwork hours and negative crossearnings effects. Neither the joint utility model of family labor supply nor an ad hoc "traditional family" model is supported by these results.
منابع مشابه
The response of Japanese wives ’ labor supply to husbands ’ job loss
This paper examines how Japanese wives react to their husbands’ involuntary job loss and tests the existence of complementarity of a wife’s labor supply to her husband’s. Utilizing panel data on Japanese households from 1993 to 2004, we found that wives’ labor supply is stimulated when husbands suffer involuntary job loss. The detailed statistics show that not only do working wives raise their ...
متن کاملEmployer-Provided Health Insurance and Labor Supply of Married Women
This work presents new evidence on the effect of husbands’ health insurance on wives’ labor supply. Previous cross-sectional studies have estimated a significant negative effect of spousal coverage on wives’ labor supply. However, these estimates potentially suffer from bias due to the simultaneity of wives’ labor supply and the health insurance status of their husbands. This paper attempts to ...
متن کاملThe Second Paycheck to Keep Up With the Joneses: Relative Income Concerns and Labor Market Decisions of Married Women
This paper investigates whether one’s effort to keep up with the Joneses has any effect on labor supply behavior. We provide a simple model and empirical evidence that labor supply decisions of married women are influenced by relative as well as absolute income of their husbands. We find, after controlling for husbands’ absolute income and other individual characteristics, that married women ar...
متن کاملSickness in the Family
Using evidence from the Health and Retirement Study (H.R.S.), this paper assesses how husbands’ and wives’ labor supply is affected when their partner is in poor health. I apply methods for dealing with the endogeneity and mismeasurement of dichotomous reported health status, which can only be used with data such as are present in the H.R.S. Contrary to results from the limited work which has b...
متن کاملThe Unemployment of Their Spouses
This study analyzes the cyclical and short-term determinants of the labor supply of married women in two-earner families. Working wives often face conflicting signals in responding to cyclical downturns in labor market conditions and the unemployment of their spouses; they may, for example, want to increase hours of work because of lower family income but find themselves unable to do so because...
متن کامل