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

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  • Fortin, Nicole M

Abstract

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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  • Fortin, Nicole M, 1995. "Allocation Inflexibilities, Female Labor Supply, and Housing Assets Accumulation: Are Women Working to Pay the Mortgage?," Journal of Labor Economics, University of Chicago Press, vol. 13(3), pages 524-557, July.
    • Handle: RePEc:ucp:jlabec:v:13:y:1995:i:3:p:524-57
    DOI: 10.1086/298384
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