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Allocation Inflexibilities, Female Labor Supply, and Housing Assets Accumulation: Are Women Working to Pay the Mortgage?

Listed author(s):
  • Fortin, Nicole M

This article uses data from the Canadian Family Expenditures Survey to estimate a life-cycle-consistent model of household labor supply and commodity demand that incorporates a mortgage qualification constraint based on earnings. Both the parametric and nonparametric implications of the model suggest that the labor supply of a nontrivial percentage of married women is constrained by mortgage commitments. The results of generalized selectivity models of female labor-force participation and labor supply show that the positive effect of a high debt service ratio exceeds the negative effect of young children. Copyright 1995 by University of Chicago Press.

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File URL: http://dx.doi.org/10.1086/298384
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Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 13 (1995)
Issue (Month): 3 (July)
Pages: 524-557

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Handle: RePEc:ucp:jlabec:v:13:y:1995:i:3:p:524-57
Contact details of provider: Web page: http://www.journals.uchicago.edu/JOLE/

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