Heterogeneous preferences, spousal interaction, and couples' time-use

Almut Balleer, Monika Merz and Tamás K. Papp

No 1088, Ruhr Economic Papers from RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen

Abstract: We study the role of heterogeneous preferences at the spousal level and that of spousal mutual insurance against wage shocks for couples' labor supply in a time-use model. We estimate the model for couples in the German Time-Use Survey with Bayesian techniques and generate gender-specific wage-elasticities of market hours in the cross-section and for all couples. Missing mutual insurance ignores males' behavior which we find to be substantial. Together with preference heterogeneity it shapes the elasticities' size and distribution, especially for high and low hours worked and wage groups. Our setting is suitable to analyze nonlinear and distributional economic policy.

Keywords: Preference heterogeneity; spousal labor supply; Bayesian estimation; Marshallian wage elasticity (search for similar items in EconPapers)
JEL-codes: D13 E24 J22 (search for similar items in EconPapers)
Date: 2024
New Economics Papers: this item is included in nep-lma
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:rwirep:301861

DOI: 10.4419/96973265

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