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Allocation Inflexibilities, Female Labor Supply, and Housing Assets Accumulation: Are Women Working to Pay the Mortgage?

Nicole Fortin

Journal of Labor Economics, 1995, vol. 13, issue 3, 524-57

Abstract: This article uses data from the Canadian Family Expenditures Survey to estimate a life-cycle-consistent model of household labor supply and commodity demand that incorporates a mortgage qualification constraint based on earnings. Both the parametric and nonparametric implications of the model suggest that the labor supply of a nontrivial percentage of married women is constrained by mortgage commitments. The results of generalized selectivity models of female labor-force participation and labor supply show that the positive effect of a high debt service ratio exceeds the negative effect of young children. Copyright 1995 by University of Chicago Press.

Date: 1995
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Related works:
Working Paper: Allocation Inflexibilities, Female Labor Supply and Housing Assets Accumulation: Are Women Working to Pay the Mortagage (1992)
Working Paper: Allocation Inflexibilities, Female Labor Supply and Housing Assets Accumulation: Are Women Working to Pay the Mortagage (1992)
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