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THE LIFE‐CYCLE LABOR SUPPLY OF MARRIED WOMEN AND ITS IMPLICATIONS FOR HOUSEHOLD INCOME INEQUALITY
Author(s) -
Shaw Kathryn L
Publication year - 1992
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1111/j.1465-7295.1992.tb01288.x
Subject(s) - economics , economic inequality , income elasticity of demand , labour economics , panel study of income dynamics , income distribution , panel data , household income , total personal income , wife , demographic economics , inequality , gross income , econometrics , mathematical analysis , mathematics , public economics , archaeology , tax reform , political science , law , history , state income tax
In a life‐cycle model of married womens' labor supply the husband's expected lifetime income should have a greater effect on his wife's labor supply than should his current income. Using the Panel Study of Income Dynamics data, the husband's average lifetime income (over the panel years) does have a greater negative income effect than current income. However, this income effect has declined over time: the labor supply of wives is becoming less sensitive to their husbands' incomes. This declining elasticity would cause household income inequality to worsen over time, but has been offset by other factors.