Running hard and falling behind: A welfare analysis of two-earner families
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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Volume (Year): 10 (1997)
Issue (Month): 3 ()
|Note:||Received September 25, 1995 / Accepted February 5, 1997|
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