Running hard and falling behind: A welfare analysis of two-earner families

Robert Moore, Mary Mathewes Kassis and Julie Hotchkiss
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Mary Mathewes Kassis: Economic Forecasting Center, Georgia State University, University Plaza, Atlanta, GA 30303, USA (Fax:

Journal of Population Economics, 1997, vol. 10, issue 3, 237-250

Abstract: This paper investigates the commonly asserted proposition that long term economic changes have put the family in a financial bind. Structural parameters of a family utility model are obtained by estimating simultaneous labor supply functions for a two-earner household. We find evidence indicating that the average 1990`s two-earner family would prefer to receive the 1980`s real wage package (were it available) instead of the real wage package it actually faces. The degree to which the 1990`s family is worse off (in terms of the changes in the real wage package) is roughly equivalent to an hour of leisure per week.

Keywords: Family; utility; ·; welfare; ·; joint; labor; supply (search for similar items in EconPapers)
JEL-codes: C31 D10 J22 (search for similar items in EconPapers)
Date: 1997
Note: Received September 25, 1995 / Accepted February 5, 1997
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Citations: View citations in EconPapers (8)

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