Measuring the effect of husband's health on wife's labor supply
A sizable proportion of women remain married well into late life and an increasing proportion of them participate in the labor force. Since women tend to marry men older than themselves and men tend to experience serious illnesses at younger ages than women, women frequently witness declining health in their husbands. This is likely to affect a wife's labor-leisure trade-off in offsetting ways. Prior studies have not sought to disentangle the effect of a husband's poor health on his wife's reservation wage from the income effect of his ill health. We argue that, if we control for husband's earnings, the coefficient of husband's health in models of his wife's labor force participation (and hours of work) will reflect, in part, her preference over whether to decrease her labor supply to provide health care for her husband or whether to instead increase it to purchase this care in the market. However, husband's earnings are likely to be endogenous in these models due to unobserved characteristics common to husbands and wives. We find that the estimated effect of husband's health depends on whether we instrument for husband's earnings and on the health measure used. This is indicative of the importance of using a variety of health measures and controlling for husband's earnings, and their endogeneity, in future research on the effect of husband's health on wife's labor supply. Copyright © 2006 John Wiley & Sons, Ltd.
Volume (Year): 15 (2006)
Issue (Month): 6 ()
|Contact details of provider:|| Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/5749|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Inman, Robert P, 1987. "The Economic Consequences of Debilitating Illness: The Case of Multiple Sclerosis," The Review of Economics and Statistics, MIT Press, vol. 69(4), pages 651-660, November.
- Berger, Mark C. & Fleisher, Belton M., 1984. "Husband's health and wife's labor supply," Journal of Health Economics, Elsevier, vol. 3(1), pages 63-75, April.
- Bound, John & Schoenbaum, Michael & Stinebrickner, Todd R. & Waidmann, Timothy, 1999.
"The dynamic effects of health on the labor force transitions of older workers,"
Elsevier, vol. 6(2), pages 179-202, June.
- John Bound & Michael Schoenbaum & Todd R. Stinebrickner & Timothy Waidmann, 1998. "The Dynamic Effects of Health on the Labor Force Transitions of Older Workers," NBER Working Papers 6777, National Bureau of Economic Research, Inc.
- Dwyer, Debra Sabatini & Mitchell, Olivia S., 1999.
"Health problems as determinants of retirement: Are self-rated measures endogenous?,"
Journal of Health Economics,
Elsevier, vol. 18(2), pages 173-193, April.
- Debra S. Dwyer & Olivia S. Mitchell, "undated". "Health Problems as Determinants of Retirement: Are Self-Rated Measures Endogenous?," Pension Research Council Working Papers 98-7, Wharton School Pension Research Council, University of Pennsylvania.
- Debra Sabatini Dwyer & Olivia S. Mitchell, 1998. "Health Problems as Determinants of Retirement: Are Self-Rated Measures Endogenous?," NBER Working Papers 6503, National Bureau of Economic Research, Inc.
- William G. Johnson & Edward H. Murphy Jr., 1975. "The Response of Low-Income Households to Income Losses from Disability," ILR Review, Cornell University, ILR School, vol. 29(1), pages 85-96, October.
- Parsons, Donald O, 1977. "Health, Family Structure, and Labor Supply," American Economic Review, American Economic Association, vol. 67(4), pages 703-712, September.
- Butler, J S, et al, 1987. "Measurement Error in Self-reported Health Variables," The Review of Economics and Statistics, MIT Press, vol. 69(4), pages 644-650, November.
- John Bound, 1991. "Self-Reported Versus Objective Measures of Health in Retirement Models," Journal of Human Resources, University of Wisconsin Press, vol. 26(1), pages 106-138.
- Robert B. Wallace & A. Regula Herzog, 1995. "Overview of the Health Measures in the Health and Retirement Study," Journal of Human Resources, University of Wisconsin Press, vol. 30, pages s84-s107.
- Tennille J. Checkovich & Steven Stern, 2002.
"Shared Caregiving Responsibilities of Adult Siblings with Elderly Parents,"
Journal of Human Resources,
University of Wisconsin Press, vol. 37(3), pages 441-478.
- Steven Stern & Tennille J. Neuharth, 2000. "Shared Caregiving Responsibilities of Adult Siblings with Elderly Parents," Virginia Economics Online Papers 323, University of Virginia, Department of Economics.
- Currie, Janet & Madrian, Brigitte C., 1999. "Health, health insurance and the labor market," Handbook of Labor Economics,in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 50, pages 3309-3416 Elsevier.
- Ettner, Susan L., 1996. "New evidence on the relationship between income and health," Journal of Health Economics, Elsevier, vol. 15(1), pages 67-85, February.
- Marilyn Moon & F. Thomas Juster, 1995. "Economic Status Measures in the Health and Retirement Study," Journal of Human Resources, University of Wisconsin Press, vol. 30, pages s138-s157.
- Gloria J. Bazzoli, 1985. "The Early Retirement Decision: New Empirical Evidence on the Influence of Health," Journal of Human Resources, University of Wisconsin Press, vol. 20(2), pages 214-234.
- Haurin, Donald R, 1989. "Women's Labor Market Reactions to Family Disruptions," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 54-61, February.