Full Citation
Title: The Family Time Crunch: An Analysis of Changes in the Labor Supply Patterns of US Families since 1940
Citation Type: Dissertation/Thesis
Publication Year: 2000
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Abstract: The impact on families and society of increasing numbers of two-earner couples continues to receive significant attention among policymakers. However, model complexities and lack of data have resulted in a paucity of empirical analyses of family labor supply trends. This paper uses pseudo-panel data constructed from the U.S. Census from 1940-1990 to examine the life-cycle labor force participation of white, married couples. Descriptive analysis shows significantly different patterns across five levels of education, especially for generations born after 1930. Standard individual labor supply equations for married men and women are estimated separately and as a simultaneous, two-equation system. This structure accommodates a model of family labor supply as the Pareto-efficient outcome of bargaining between spouses. Consistent with the bargaining model, the participation decision of the husband and the wife is found to have a significant and positive impact on the participation decision of their spouse. The positive relationship may also suggest assortative mating with regard to labor force participation preferences. The findings of negative own wage elasticity and positive income elasticity support the predictions of the standard labor-leisure model.Overall, the results suggest a strong secular increase in married female labor force participation. While the traditional labor supply model provides a partial explanation for this increase, the increase can not be fully explained as a simple trend across generations, or as changes across generations in the coefficients of the traditional labor supply specification. This paper's analysis forms a foundation for traditional research extensions such as analysis of annual hours and analysis of black family labor supply patterns. Additionally, this paper provides a framework for analyzing more speculative causes of the observed couple labor supply patterns such as increased exposure to advertising and increased consumer debt.
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Authors: Russell, Jeffrey
Institution: University of Oregon
Department: Economics
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Degree: Doctor of Philosophy
Publisher Location: Eugene, OR
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Data Collections: IPUMS USA
Topics: Family and Marriage, Labor Force and Occupational Structure
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