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Do the Maids Get a Meager Pie?

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  • Sahana Roy Chowdhury

    (International Management Institute, Kolkata)

Abstract

This paper builds a simple theoretical model to provide an economic justification of why maids’ wages in general, are set much lower than what is socially desirable. The model studies possible spill-over effects in the maids’ labor market when maids are available to complement female labor supply in household activities. Maid is wage taker while the female household sets the wage. It shows that such optimization drives a wedge between social and private optimum leading to a meager pay for the maids.

Suggested Citation

  • Sahana Roy Chowdhury, 2018. "Do the Maids Get a Meager Pie?," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 16(2), pages 589-594, June.
    • Handle: RePEc:spr:jqecon:v:16:y:2018:i:2:d:10.1007_s40953-017-0091-6
    DOI: 10.1007/s40953-017-0091-6
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    References listed on IDEAS

    as
    1. Patricia Cortés & José Tessada, 2011. "Low-Skilled Immigration and the Labor Supply of Highly Skilled Women," American Economic Journal: Applied Economics, American Economic Association, vol. 3(3), pages 88-123, July.
    2. Elena G. F. Stancanelli & Leslie S. Stratton, 2014. "Maids, Appliances and Couples' Housework: The Demand for Inputs to Domestic Production," Economica, London School of Economics and Political Science, vol. 81(323), pages 445-467, July.
    3. L. Rachel Ngai & Christopher A. Pissarides, 2008. "Employment Outcomes in the Welfare State," Revue économique, Presses de Sciences-Po, vol. 59(3), pages 413-436.
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    More about this item

    Keywords

    Female labor supply; Home-maid; Wage-setting; Welfare;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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