Wage Inequality and Family Labor Supply

Chinhui Juhn () and Kevin M. Murphy

No 5459, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Using data from the March CPS and the 1960 Census, this paper describes earnings and employment changes for married couples in different types of households stratified by the husband's hourly wage. While the declines in male employment and earnings have been greatest for low wage men, employment and earnings gains have been largest for wives of middle and high wage men. These findings cast doubt on the notion that married women have increased their labor supply in the recent decades to compensate for the disappointing earnings growth of their husbands. We conclude that own wage effects dominate cross effects between husband and wife in accounting for changes in male and female employment.

JEL-codes: J22 (search for similar items in EconPapers)
Date: 1996-02
Note: LS
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Journal Article: Wage Inequality and Family Labor Supply (1997)
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