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Labour supply and wages among nuclear and extended households: The Surinamese experiment

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  • J. S. Butler
  • Andrew Horowitz

Abstract

This article explores labour market behaviour of members of extended and nuclear households in Suriname. Previous analyses have found that co-operative childcare opportunities within the extended household increase female labour force participation. Such coordination implies correlated participation decisions, which invalidates standard assumptions made in estimating participation with probits and wages with regressions. We employ a GMM estimation, which allows correlation among household members. We find that extended and nuclear household members are not significantly different in participation propensities, but do differ significantly in wages. We argue that greater home production opportunities in extended households dilute labour market effort and hours, reducing earnings.

Suggested Citation

  • J. S. Butler & Andrew Horowitz, 2000. "Labour supply and wages among nuclear and extended households: The Surinamese experiment," Journal of Development Studies, Taylor & Francis Journals, vol. 36(5), pages 1-29.
    • Handle: RePEc:taf:jdevst:v:36:y:2000:i:5:p:1-29
    DOI: 10.1080/00220380008422644
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    1. Mark Rosenzweig & Andrew D. Foster, 1996. "Household Division, Inequality and Rural Economic Growth," Home Pages _074, University of Pennsylvania.
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    Cited by:

    1. Olivier Donni & Eliane El Badaoui, 2024. "Labor Supply In The Extended Household: Economies Of Scale, Self‐Selection, And The Intrahousehold Distribution Of Resources In South Africa," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 65(1), pages 191-215, February.
    2. Ayal Kimhi, 2003. "Family Composition and Off-Farm Participation Decisions in Israeli Farm Households," Labor and Demography 0307001, University Library of Munich, Germany.

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