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Homemakers' Imputed Wages: Results of the Heckman Technique Compared with Women's Own Estimates

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  • Marianne A. Ferber
  • Carole A. Green

Abstract

Three estimates of potential earnings of women not in the labor force, based on two data sets, were obtained (1) by using the coefficients from the regression of employed women with characteristics of the homemaker, (2) by using Heckman's adjustment for selection bias, and (3) by using the women's own views of potential earnings. The second approach yielded lower estimates than the first, as expected. The third estimate was found to be considerably higher than the second, suggesting that simple adjustment for selection bias may not be useful for the opportunity cost approach to valuation of housework.

Suggested Citation

  • Marianne A. Ferber & Carole A. Green, 1985. "Homemakers' Imputed Wages: Results of the Heckman Technique Compared with Women's Own Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 20(1), pages 90-99.
    • Handle: RePEc:uwp:jhriss:v:20:y:1985:i:1:p:90-99
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    Cited by:

    1. Madhu Mohanty, 2005. "An alternative method of estimating the worker's reservation wage," International Economic Journal, Taylor & Francis Journals, vol. 19(4), pages 501-522.
    2. France Caillavet, 1998. "La production domestique des femmes réduit l'inégalité des revenus familiaux," Économie et Statistique, Programme National Persée, vol. 311(1), pages 75-89.
    3. Antonio Accetturo & Luigi Infante, 2013. "Skills or culture? An analysis of the decision to work by immigrant women in Italy," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-21, December.
    4. Michael Papadopoulos, 2020. "Reservation Wages and Work Arrangements: Evidence From The American Life Panel," SCEPA working paper series. 2020-01, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.

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