Wives’ Labor Supply and Taxation: a Conditional Preferences Approach
In the context of the unitary model of household labour supply we test whether the husband’s work is separable from consumption and the wife’s work. We apply a conditional preferences approach to derive a conditional labor supply function for the wife consistent with a unitary model with nonseparable preferences. Our main results are that consumption and wife’s work hours are not separable from the husband’s labour supply. Furthermore we find that the wife’s and husband’s work hours are complements when men tend to work longer hours than a typical full-time contract.
|Date of creation:||Apr 2005|
|Date of revision:|
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- Thomas Mroz, .
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University of Chicago - Population Research Center
84-8, Chicago - Population Research Center.
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"Labour supply: a review of alternative approaches,"
IFS Working Papers
W98/18, Institute for Fiscal Studies.
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"Estimating labour supply responses using tax reforms,"
IFS Working Papers
W95/07, Institute for Fiscal Studies.
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