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Spousal Complementarity in Home Production

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  • Michael A. Leeds
  • Peter von Allmen

Abstract

. Economists have increasingly recognized the growing role of married women in the labor market by treating the labor supply decisions of married couples as joint decisions. However, they have yet to apply the same reasoning to home production. We build a more complete model of household time allocation that consists of a system of simultaneous equations estimating hours of labor supply and home production. Using data on white couples from Wave XXV of the Panel Study of Income Dynamics, we find that working wives act as if their husbands are substitutes for home production while other wives do not. Husbands’ responses to their wives’ behavior depends upon whether children are present.

Suggested Citation

  • Michael A. Leeds & Peter von Allmen, 2004. "Spousal Complementarity in Home Production," American Journal of Economics and Sociology, Wiley Blackwell, vol. 63(4), pages 795-811, October.
    • Handle: RePEc:bla:ajecsc:v:63:y:2004:i:4:p:795-811
    DOI: 10.1111/j.1536-7150.2004.00317.x
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    References listed on IDEAS

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    3. Graham, John W & Green, Carole A, 1984. "Estimating the Parameters of a Household Production Function with Joint Products," The Review of Economics and Statistics, MIT Press, vol. 66(2), pages 277-282, May.
    4. Gronau, Reuben, 1976. "The Allocation of Time of Israeli Women," Journal of Political Economy, University of Chicago Press, vol. 84(4), pages 201-220, August.
    5. Nelson, Forrest & Olson, Lawrence, 1978. "Specification and Estimation of a Simultaneous-Equation Model with Limited Dependent Variables," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 19(3), pages 695-709, October.
    6. Heckman, James J, 1974. "Shadow Prices, Market Wages, and Labor Supply," Econometrica, Econometric Society, vol. 42(4), pages 679-694, July.
    7. Robert K. Triest, 1990. "The Effect of Income Taxation on Labor Supply in the United States," Journal of Human Resources, University of Wisconsin Press, vol. 25(3), pages 491-516.
    8. Gronau, Reuben, 1980. "Home Production-A Forgotten Industry," The Review of Economics and Statistics, MIT Press, vol. 62(3), pages 408-416, August.
    9. Lundberg, Shelly J, 1988. "Labor Supply of Husbands and Wives: A Simultaneous Equations Approach," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 224-235, May.
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    Cited by:

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    2. Zhou, Siwen & Berning, Joshua P. & Bonanno, Alessandro & Bayham, Jude, 2022. "An analysis of how immigrants use time and money to manage household food insecurity," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322347, Agricultural and Applied Economics Association.
    3. Lokshin, Michael & Glinskaya, Elena, 2008. "The effect of male migration for work on employment patterns of females in nepal," Policy Research Working Paper Series 4757, The World Bank.

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