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Running hard and falling behind: A welfare analysis of two-earner families

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Author Info

  • Robert E. Moore

    (Department of Economics and Finance, The J. Whitney Bunting School of Business, Georgia College and State University, Milledgeville, GA 31061-0490, USA, and Department of Economics, School of Policy Studies, Georgia State University, University Plaza, Atlanta, GA 30303, USA (Fax:)

  • Mary Mathewes Kassis

    (Economic Forecasting Center, Georgia State University, University Plaza, Atlanta, GA 30303, USA (Fax:)

  • Julie L. Hotchkiss

    (Department of Economics, School of Policy Studies, Georgia State University, University Plaza, Atlanta, GA 30303, USA (Fax:)

Abstract

This paper investigates the commonly asserted proposition that long term economic changes have put the family in a financial bind. Structural parameters of a family utility model are obtained by estimating simultaneous labor supply functions for a two-earner household. We find evidence indicating that the average 1990`s two-earner family would prefer to receive the 1980`s real wage package (were it available) instead of the real wage package it actually faces. The degree to which the 1990`s family is worse off (in terms of the changes in the real wage package) is roughly equivalent to an hour of leisure per week.

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Bibliographic Info

Article provided by Springer in its journal Journal of Population Economics.

Volume (Year): 10 (1997)
Issue (Month): 3 ()
Pages: 237-250

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Handle: RePEc:spr:jopoec:v:10:y:1997:i:3:p:237-250

Note: Received September 25, 1995 / Accepted February 5, 1997
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Related research

Keywords: Family utility · welfare · joint labor supply;

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Cited by:
  1. Julie L. Hotchkiss, 2005. "What’s up with the decline in female labor force participation?," Working Paper 2005-18, Federal Reserve Bank of Atlanta.
  2. Julie L. Hotchkiss & Robert E. Moore, 2007. "Assessing the welfare impact of the 2001 tax reform on dual-earner families," Working Paper 2007-27, Federal Reserve Bank of Atlanta.

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