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Heterogeneous preferences, spousal interaction, and couples' time-use

Author

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  • Balleer, Almut
  • Merz, Monika
  • Papp, Tamás K.

Abstract

We study the role of heterogeneous preferences at the spousal level and that of spousal mutual insurance against wage shocks for couples' labor supply in a time-use model. We estimate the model for couples in the German Time-Use Survey with Bayesian techniques and generate gender-specific wage-elasticities of market hours in the cross-section and for all couples. Missing mutual insurance ignores males' behavior which we find to be substantial. Together with preference heterogeneity it shapes the elasticities' size and distribution, especially for high and low hours worked and wage groups. Our setting is suitable to analyze nonlinear and distributional economic policy.

Suggested Citation

  • Balleer, Almut & Merz, Monika & Papp, Tamás K., 2024. "Heterogeneous preferences, spousal interaction, and couples' time-use," Ruhr Economic Papers 1088, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    • Handle: RePEc:zbw:rwirep:301861
    DOI: 10.4419/96973265
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    References listed on IDEAS

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    1. Mikhail Golosov & Michael Graber & Magne Mogstad & David Novgorodsky, 2024. "How Americans Respond to Idiosyncratic and Exogenous Changes in Household Wealth and Unearned Income," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 139(2), pages 1321-1395.
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    More about this item

    Keywords

    Preference heterogeneity; spousal labor supply; Bayesian estimation; Marshallian wage elasticity;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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