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Unemployment and Female Labour Supply

In: Unemployment in Europe

Author

Listed:
  • Richard Blundell
  • John Ham
  • Costas Meghir

Abstract

The definition of labour-force participation in the standard labour-supply model stands in sharp contrast to that used in compiling the labour-force statistics. In the labour-supply models only those supplying positive hours of work are considered to be labour-force participants. On the other hand, participation in the labour-force statistics is often defined to include not only those supplying positive hours but also those actively searching for work. This paper is an attempt to reconcile these concepts by allowing ‘unemployed’ workers to enter a generalisation of the standard labour-supply model. This turns out to be a convenient way to enter demand-side factors directly into the determination of an individual’s labour market position. The model is applied with some success to the working behaviour of married women in the UK Family Expenditure Survey.

Suggested Citation

  • Richard Blundell & John Ham & Costas Meghir, 1989. "Unemployment and Female Labour Supply," Palgrave Macmillan Books, in: Joan Muysken & Chris Neubourg (ed.), Unemployment in Europe, chapter 1, pages 9-36, Palgrave Macmillan.
  • Handle: RePEc:pal:palchp:978-1-349-19795-8_2
    DOI: 10.1007/978-1-349-19795-8_2
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