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Changes in family welfare from 1994 to 2012: a tale of two decades

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Abstract

The female/male average wage ratio has steadily risen from 1983 to 2012. In earlier work, we found that the falling wage gap from 1983 to 1993 was materially detrimental to the average dual-earner family. The female/male wage ratio continued to rise over the following two decades, accompanied by a growing share of households in which the wife is the principal household income generator. This paper investigates how these two developments affected family welfare. Although family welfare rose during the 1990s, the story of the 2000s is quite different.

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  • Hotchkiss, Julie L. & Moore, Robert E. & Rios-Avila, Fernando & Trussell, Melissa R., 2014. "Changes in family welfare from 1994 to 2012: a tale of two decades," FRB Atlanta Working Paper 2014-26, Federal Reserve Bank of Atlanta.
  • Handle: RePEc:fip:fedawp:2014-26
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    1. John Pencavel, 2002. "A Cohort Analysis of the Association between Work Hours and Wages among Men," Journal of Human Resources, University of Wisconsin Press, vol. 37(2), pages 251-274.
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    6. Apps,Patricia & Rees,Ray, 2009. "Public Economics and the Household," Cambridge Books, Cambridge University Press, number 9780521716284, October.
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    10. David Lam, 1988. "Marriage Markets and Assortative Mating with Household Public Goods: Theoretical Results and Empirical Implications," Journal of Human Resources, University of Wisconsin Press, vol. 23(4), pages 462-487.
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    13. Eissa, Nada & Kleven, Henrik Jacobsen & Kreiner, Claus Thustrup, 2008. "Evaluation of four tax reforms in the United States: Labor supply and welfare effects for single mothers," Journal of Public Economics, Elsevier, vol. 92(3-4), pages 795-816, April.
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    15. Fernando Rios-Avila & Julie L. Hotchkiss, 2014. "A Decade of Flat Wages?," Economics Policy Note Archive 14-4, Levy Economics Institute.
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    More about this item

    Keywords

    joint labor supply; family utility; micro-simulation;

    JEL classification:

    • D19 - Microeconomics - - Household Behavior - - - Other
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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