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.
KeywordsIncome Micro Model
- Grossbard-Shechtman, Shoshana. 2005. A model of labour supply, household production, and marriage. In Advances in household economics, consumer behaviour and economic policy, ed. T. Van Hoa. London: Ashgate.Google Scholar