Engines of liberation redux when home appliances prices are endogenous

Einfluss des Preises von Haushaltsgeräten auf die Erwerbsbeteiligung von Frauen

Sebastien Buttet () and Veronika Dolar
Additional contact information
Sebastien Buttet: Guttman Community College

Journal for Labour Market Research, 2015, vol. 48, issue 1, 27-40

Abstract: Abstract We propose a model of the household where the transmission mechanism between home appliances and women’s labor supply is identical to the one in Greenwood et al. (2005b) with one important exception. We explicitly model firms’ pricing and output choices in the appliances sector and thus, the price of home appliances is determined endogenously by the laws of supply and demand rather than being taken exogenously from outside the model. We use this new framework to characterize the general equilibrium effects of rising household wages on the price of home appliances, and thus ultimately women’s labor supply. The ratio between the price of home appliances and household wages declines following a rise in the wage level, which leads to widespread adoption of home appliances and increased labor force participation of married women. A numerical example shows that rising wages account for half of the increase in participation of married women between 1960 and 1970.

Keywords: Total Factor Productivity; Labor Force Participation; Married Woman; Total Factor Productivity Growth; Labor Force Participation Rate (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s12651-014-0167-0 Abstract (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:jlabrs:v:48:y:2015:i:1:d:10.1007_s12651-014-0167-0

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/12651

DOI: 10.1007/s12651-014-0167-0

Access Statistics for this article

Journal for Labour Market Research is currently edited by Joachim Möller

More articles in Journal for Labour Market Research from Springer, Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB)
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().