Living arrangements, consumption smoothing, and labor supply

Publication type

Conference Paper

Series

Max Weber Fellows June Conference 2010, held 15-16 June 2010, Villa la Fonte, San Domenico di Fiesole, Italy

Author

Publication date

June 15, 2010

Abstract:

This paper studies how the labor supply behavior of individuals depends on their living arrangement, namely, whether they are single, cohabiting, or married. I am motivated by the great amount of empirical evidence pointing out the importance of family structure for female labor supply, and the growing number of cohabiting couples. I first provide evidence on the labor supply of single, cohabiting, and married individuals using the British Household Panel Survey (BHPS). I then propose a model to explain the documented labor supply patterns, focusing on how insurance possibilities within the household may affect labor supply. In particular, if there is less intra-household insurance, that is, consumption shares depend more on the income shares of partners, incentives are expected to be provided to work more.

Subjects

Link

- http://www.econ.core.hu/file/download/korosi/2010/laczo10a.pdf

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