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Family Labor Supply and the Life Cycle Joint Estimation of Husband-Wife Relationships

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Abstract

This paper presents estimates for a neo-classical life-cycle labor supply model. The wife's wage equation is jointly estimated with the wife's and husband's labor supply equations. The estimation technique captures the dynamics of the model with fixed-effects that are estimated for all equations. The estimation method also corrects for selection with a Tobit technique. A panel of households selected from the Panel Study of Income Dynamics is used for the estimation. The results clearly indicate the presence of economic interaction within the household. Ce document présente des estimés pour un modèle néo- classique d'offre de travail. Une équation de salaire pour l'épouse est estimée conjointement avec les offres de travail du mari et de l'épouse. La technique d'estimation contrôle pour la dynamique du modèle en estimant un effet fixe dans chaque équation. La technique corrige aussi pour le biais de sélection avec un Tobit. Un panel de ménages tiré du Panel Study of Income Dynamics sert pour l'estimation. Les résultats démontrèrent clairement la présence d'interactions économiques dans le couple.

Suggested Citation

  • Philip Merrigan, 1993. "Family Labor Supply and the Life Cycle Joint Estimation of Husband-Wife Relationships," Cahiers de recherche CREFE / CREFE Working Papers 12, CREFE, Université du Québec à Montréal.
  • Handle: RePEc:cre:crefwp:12
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    More about this item

    Keywords

    Life-cycle labor supply; PSID; Househol interaction;

    JEL classification:

    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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