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Allocation Inflexibilities , Female Labor Supply and Housing Assets Accumulation: Are Women Working to Pay the Mortagage

  • Fortin, N.M.

This article uses data from the Canadian Family Expenditures Survey to estimate a life-cycle-consistent model of household labor supply and commodity demand that incorporates a mortgage qualification constraint based on earnings. Both the parametric and nonparametric implications of the model suggest that the labor supply of a nontrivial percentage of married women is constrained by mortgage commitments. The results of generalized selectivity models of female labor-force participation and labor supply show that the positive effect of a high debt service ratio exceeds the negative effect of young children. Copyright 1995 by University of Chicago Press.

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Paper provided by Universite de Montreal, Departement de sciences economiques in its series Cahiers de recherche with number 9204.

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Length: 46 pages
Date of creation: 1992
Date of revision:
Handle: RePEc:mtl:montde:9204
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