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Using Spatial Econometric Techniques to Analyze the Joint Employment Decisions of Spouses

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  • Kalenkoski, Charlene M.

    ()
    (Texas Tech University)

  • Lacombe, Donald J.

    ()
    (West Virginia University)

Abstract

Studies of the joint time-use decisions of spouses have relied on joint estimation of time-use equations, sometimes assuming correlated errors across spouses' equations and sometimes directly examining the effects of one spouse's time use on another's, relying on panel data or instrumental variables techniques to account for endogeneity. However, panel data often are not available and available instruments often are not satisfactory, making examination of the direct relationship between spouses' time use difficult. Spatial econometric techniques applied to cross-sectional data do not require instrumental variables. This study estimates a Spatial Autoregressive (SAR) Model to examine the labor hours of husbands and wives in dual-earner couples using the 2012 Annual Social and Economic Supplement to the Current Population Survey (ASEC). In this model, each spouse is treated as a direct “neighbor” of the other in a spatial weight matrix and non-spouses are treated as non-neighbors. Estimates of both the own- and cross-wage effects on labor hours and an estimate of the direct relationship between spouses' labor hours are obtained.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 8050.

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Length: 17 pages
Date of creation: Mar 2014
Date of revision:
Handle: RePEc:iza:izadps:dp8050

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Related research

Keywords: employment; intrahousehold allocation of time; own- and cross-wage effects; spatial econometrics;

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References

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  1. Laurens Cherchye & Bram De Rock & Frederic Vermeulen, 2012. "Married with Children: A Collective Labor Supply Model with Detailed Time Use and Intrahousehold Expenditure Information," ULB Institutional Repository 2013/131705, ULB -- Universite Libre de Bruxelles.
  2. Daniel Hallberg & Anders Klevmarken, 2003. "Time for children: A study of parent's time allocation," Journal of Population Economics, Springer, Springer, vol. 16(2), pages 205-226, 05.
  3. Michael A. Leeds & Peter von Allmen, 2004. "Spousal Complementarity in Home Production," American Journal of Economics and Sociology, Wiley Blackwell, vol. 63(4), pages 795-811, October.
  4. Peter Kennedy, 2003. "A Guide to Econometrics, 5th Edition," MIT Press Books, The MIT Press, edition 5, volume 1, number 026261183x, December.
  5. Hans G. Bloemen & Elena Stancanelli, 2008. "How do parents allocate time : the effects of wages and income," Documents de Travail de l'OFCE, Observatoire Francais des Conjonctures Economiques (OFCE) 2008-30, Observatoire Francais des Conjonctures Economiques (OFCE).
  6. Lundberg, Shelly J, 1988. "Labor Supply of Husbands and Wives: A Simultaneous Equations Approach," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 224-35, May.
  7. Younghwan Song, 2007. "The working spouse penalty/premium and married women’s labor supply," Review of Economics of the Household, Springer, Springer, vol. 5(3), pages 279-304, September.
  8. repec:spo:wpecon:info:hdl:2441/9664 is not listed on IDEAS
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