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Running hard and falling behind: A welfare analysis of two-earner families

Author

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  • Robert E. Moore

    (Department of Economics and Finance, The J. Whitney Bunting School of Business, Georgia College and State University, Milledgeville, GA 31061-0490, USA, and Department of Economics, School of Policy Studies, Georgia State University, University Plaza, Atlanta, GA 30303, USA (Fax:)

  • Mary Mathewes Kassis

    (Economic Forecasting Center, Georgia State University, University Plaza, Atlanta, GA 30303, USA (Fax:)

  • Julie L. Hotchkiss

    (Department of Economics, School of Policy Studies, Georgia State University, University Plaza, Atlanta, GA 30303, USA (Fax:)

Abstract

This paper investigates the commonly asserted proposition that long term economic changes have put the family in a financial bind. Structural parameters of a family utility model are obtained by estimating simultaneous labor supply functions for a two-earner household. We find evidence indicating that the average 1990`s two-earner family would prefer to receive the 1980`s real wage package (were it available) instead of the real wage package it actually faces. The degree to which the 1990`s family is worse off (in terms of the changes in the real wage package) is roughly equivalent to an hour of leisure per week.

Suggested Citation

  • Robert E. Moore & Mary Mathewes Kassis & Julie L. Hotchkiss, 1997. "Running hard and falling behind: A welfare analysis of two-earner families," Journal of Population Economics, Springer;European Society for Population Economics, vol. 10(3), pages 237-250.
    • Handle: RePEc:spr:jopoec:v:10:y:1997:i:3:p:237-250
    Note: Received September 25, 1995 / Accepted February 5, 1997
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    Citations

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    Cited by:

    1. Julie L. Hotchkiss & Robert E. Moore & Fernando Rios-Avila, 2017. "Family Welfare and the Cost of Unemployment," FRB Atlanta Working Paper 2017-7, Federal Reserve Bank of Atlanta.
    2. Julie L. Hotchkiss, 2005. "What’s up with the decline in female labor force participation?," FRB Atlanta Working Paper 2005-18, Federal Reserve Bank of Atlanta.
    3. Julie L. Hotchkiss & Robert E. Moore & Fernando Rios-Avila & Melissa R. Trussell, 2017. "A tale of two decades: Relative intra-family earning capacity and changes in family welfare over time," Review of Economics of the Household, Springer, vol. 15(3), pages 707-737, September.
    4. Julie L. Hotchkiss & Robert E. Moore & Fernando Rios-Avila, 2014. "Assessing the Welfare Impact of Tax Reform: A Case Study of the 2001 U.S. Tax Cut," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(2), pages 404-404, June.
    5. Hotchkiss, Julie L. & Moore, Robert E. & Rios-Avila, Fernando, 2020. "Cost of policy choices: A microsimulation analysis of the impact on family welfare of unemployment and price changes," Journal of Macroeconomics, Elsevier, vol. 63(C).
    6. Julie L. Hotchkiss & Robert E. Moore, 2007. "Assessing the welfare impact of the 2001 tax reform on dual-earner families," FRB Atlanta Working Paper 2007-27, Federal Reserve Bank of Atlanta.
    7. Julie L. Hotchkiss & Robert E. Moore & Fernando Rios-Avila, 2021. "Impact of the 2017 Tax Cuts and Jobs Act on Labor Supply and Welfare of Married Households," FRB Atlanta Working Paper 2021-18, Federal Reserve Bank of Atlanta.
    8. Julie L. Hotchkiss & Robert E. Moore & Fernando Rios-Avila & Melissa R. Trussell, 2014. "Changes in family welfare from 1994 to 2012: a tale of two decades," FRB Atlanta Working Paper 2014-26, Federal Reserve Bank of Atlanta.

    More about this item

    Keywords

    Family utility · welfare · joint labor supply;

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models

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