American Economic Review: Vol. 104 No. 5 (May 2014)


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Labor Supply and Household Dynamics

Article Citation

Mazzocco, Maurizio, Claudia Ruiz, and Shintaro Yamaguchi. 2014. "Labor Supply and Household Dynamics." American Economic Review, 104(5): 354-59.

DOI: 10.1257/aer.104.5.354


Using the Panel Study of Income Dynamics, we provide evidence that to understand household decisions and evaluate policies designed to affect individual welfare, it is important to add an intertemporal dimension to the by-now standard static collective models of the household. Specifically, we document that the observed differences in labor supply by gender and marital status do not arise suddenly at the time of marriage, but rather emerge gradually over time. We then propose an intertemporal collective model that has the potential of explaining the observed patterns.

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Mazzocco, Maurizio (UCLA)
Ruiz, Claudia (World Bank)
Yamaguchi, Shintaro (McMaster U)

JEL Classifications

D13: Household Production and Intrahousehold Allocation
J12: Marriage; Marital Dissolution; Family Structure; Domestic Abuse
J16: Economics of Gender; Non-labor Discrimination
J22: Time Allocation and Labor Supply
J31: Wage Level and Structure; Wage Differentials

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