Family ties and labor supply
AbstractWe develop a theoretical model of the household where family ties impose a distortion on the job search incentives of unemployed members and on the young adults’ decision of leaving the parental house. We find that the search efforts of unemployed family members are strategic substitutes, the young adult leaves the parental house only if his market wage is sufficiently high, and a low wage for the young implies that the mother’s and the young adult’s search efforts are low and, as a result, their probabilities of unemployment are high. The presence of a household good is crucial for these results. The model predictions are roughly consistent with the Spanish evidence. (Copyright: Fundación SEPI)
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Bibliographic InfoArticle provided by Fundación SEPI in its journal Investigaciones Económicas.
Volume (Year): 29 (2005)
Issue (Month): 2 (May)
Contact details of provider:
Postal: Investigaciones Economicas Fundación SEPI Quintana, 2 (planta 3) 28008 Madrid Spain
Web page: http://www.fundacionsepi.es/
Find related papers by JEL classification:
- D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
- J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
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