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Household Interaction And The Labor Supply Of Married Women

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  • Zvi Eckstein
  • Osnat Lifshitz

Abstract

Are changing social norms affecting the employment rates of women? A model is built in which the employment of husbands and wives is the outcome of potentially exogenously determined three different types of household games: the Classical household, where the spouses play a Stackelberg leader game in which the wife's labor supply decision is based on her husband's employment outcome; the Modern household, which is characterized by a symmetric and simultaneous game solved as a Nash equilibrium, and the Cooperative household, where the couple jointly maximizes the weighted sum of their utilities. In all models, husbands’ employment is similar whereas wives work much less in Classical households.

Suggested Citation

  • Zvi Eckstein & Osnat Lifshitz, 2015. "Household Interaction And The Labor Supply Of Married Women," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 56(2), pages 427-455, May.
    • Handle: RePEc:wly:iecrev:v:56:y:2015:i:2:p:427-455
    DOI: 10.1111/iere.12110
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    References listed on IDEAS

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    Cited by:

    1. Behera, Sarthak & Sadana, Divya, 2021. "Differing Labor Supply: A Study on the Role of Culture," MPRA Paper 110753, University Library of Munich, Germany.
    2. Kaya, Ezgi, 2014. "Heterogeneous Couples, Household Interactions and Labor Supply Elasticities of Married Women," Cardiff Economics Working Papers E2014/18, Cardiff University, Cardiff Business School, Economics Section.
    3. Michel Strawczynski, 2020. "Optimal EITC in the Presence of Cultural Barriers for Labor Market Participation," Journal of Labor Research, Springer, vol. 41(3), pages 233-259, September.

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    More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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