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Off-Farm Work Decisions of Husbands and Wives: Joint Decision Making

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  • Huffman, Wallace E.
  • Lange, Mark D.

Abstract

Theoretical and econometric models are developed to examine joint wage-labor participation and hours decisions of a husband and wife in farm households. The econometric model is multiple equation and recursive. The specification of the off-farm labor supply equation of the husband (wife) depends on whether his (her) wife (husband) does or does not work off-farm, and this structure is endogenous. The model is fitted to data for Iowa farm households. The main conclusion is that the off-farm labor supply equation of a married individ- ual differs significantly depending on whether his or her spouse also works for a wage.

Suggested Citation

  • Huffman, Wallace E. & Lange, Mark D., 1989. "Off-Farm Work Decisions of Husbands and Wives: Joint Decision Making," ISU General Staff Papers 198908010700001378, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:198908010700001378
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