The Life-Cycle Labor Supply of Married Women and Its Implications for Household Income Inequality

Kathryn Shaw

Economic Inquiry, 1992, vol. 30, issue 4, 659-72

Abstract: In a life-cycle model of married women's labor supply, the husband's expected lifetime income should have a greater effect on his wife's labor supply than should his current income. Using the Panel Study of Income and Dynamics data, the husband's average lifetime income (over the panel years) does have a greater negative income effect than current income. However, this income effect has declined over time; the labor supply of wives is becoming less sensitive to their husbands' incomes. This declining elasticity would cause household income inequality to worsen over time, but has been offset by other factors. Copyright 1992 by Oxford University Press.

Date: 1992
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