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Title:Household labor supply and home services in a general-equilibrium model with heterogeneous agents PDF Logo
Authors:Bredemeier, Christian
Jüßen, Falko
Issue Date:2009
Series/Report no.:IZA discussion papers 3944
Abstract:We propose a new explanation for differences and changes in labor supply by gender and marital status, and in particular for the increase in married women's labor supply over time. We argue that this increase as well as the relative constancy of other groups' hours are optimal reactions to outsourcing labor in home production becoming more attractive to households over time. To investigate this hypothesis, we incorporate heterogeneous agents into a household model of labor supply and allow agents to trade home labor. This model can generate the observed patterns in US labor supply by gender and marital status as a reaction to declining frictions on the market for home services. We provide an accounting exercise to highlight the role of alternative explanations for the rise in hours in a model where home labor is tradable.
Subjects:Labor supply
gender
home production
heterogeneity
JEL:J22
J16
E13
D13
Persistent Identifier of the first edition:urn:nbn:de:101:1-20090209140
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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