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Are spousal labor supplies substitutes? evidence from the workweek reduction policy in China

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  • Ma, Yueyuan
  • Shi, Xinzheng

Abstract

We estimate the effects of spousal labor supply on individuals’ labor supply by using the implementation of China’s 1994–1995 workweek reduction policy as a natural experiment. We find that a decrease in the labor supply of wives significantly increased that of husbands, but a decrease in the labor supply of husbands had an insignificantly negative effect on that of their wives. Furthermore, a decrease in the labor supply of one spouse reduced the amount of time spent on housework by the other one. Our findings on the negative relationship between spousal labor supplies differ from those derived from data from developed countries. We find evidence that different income levels may be the underlying reason.

Suggested Citation

  • Ma, Yueyuan & Shi, Xinzheng, 2020. "Are spousal labor supplies substitutes? evidence from the workweek reduction policy in China," Journal of Development Economics, Elsevier, vol. 145(C).
    • Handle: RePEc:eee:deveco:v:145:y:2020:i:c:s030438782030047x
    DOI: 10.1016/j.jdeveco.2020.102472
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    More about this item

    Keywords

    Workweek reduction; Spousal labor supply; Substitutes;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy

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