The Joint Determination of Household Membership and Market Work: The Case of Young Men | Zendy

Marjorie B. McElroy | Zendy

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The Joint Determination of Household Membership and Market Work: The Case of Young Men

Author(s) -

Marjorie B. McElroy

Publication year - 1985

Publication title -

journal of labor economics

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 8.184

H-Index - 109

eISSN - 1537-5307

pISSN - 0734-306X

DOI - 10.1086/298057

Subject(s) - economics , wage , work (physics) , reservation wage , consumption (sociology) , national longitudinal surveys , reservation , function (biology) , labour economics , econometrics , microeconomics , social science , evolutionary biology , sociology , political science , law , biology , mechanical engineering , engineering

Except in special cases, market work and household membership are jointly chosen. A Nash bargaining model of family behavior is used to specify stochastic structural relationships (two indirect utility functions and a market and a reservation wage function) that jointly determine work, consumption, and household membership. The maximum likelihood estimates of the implied trinomial probit model differ sharply from those obtained when either market work or household membership is taken as exogenous. This application to white male youths from the National Longitudinal Surveys shows the insurance function of families: parents insure their sons against poor market opportunities.

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