Labor Supply and Marriage Markets: A Simple Graphic Analysis with Household Public Goods



When modeling labor supply economists tend to be committed to the leisure/goods trade-off based on a 1930 model by Lionel Robbins that does not make room for effects of marriage market conditions on labor supply. By introducing Work-In-Household (WiHo) and market prices for such WiHo (as explained in Chap. 2) I obtain a relatively easy time/goods trade-off graph that shares many common features with the Robbins model but also allows for effects of marriage market conditions on time allocation, including labor supply. In contrast with earlier models in this book in which individuals only consumed private goods, this model assumes that there is one public good and no private goods.


Labor Supply Household Production Marriage Market Indifference Curve Micro Model 
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© Springer Science+Business Media New York 2015

Authors and Affiliations

  1. 1.San Diego State University and IZASan DiegoUSA

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