Household specialization and the labor-supply elasticities of women and men
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Date
2014-05-12
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Abstract
This paper studies gender differences in the elasticity of labor supply in a model of
household specialization. We show that household specialization implies larger Frisch
elasticities for the partner that specializes in home production. Quantitatively, empirical time-use ratios alone imply differences in the Frisch elasticity between women
and men of about 50%. Similar results are obtained for long-run elasticities. However,
limited commitment within the household reduces the gender differences in long-run
labor-supply elasticities. Our results imply that the elasticity of labor supply is not
a deep parameter but can react on, e.g., gender-biased employment subsidies, public
child care provision, and divorce laws.
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Keywords
labor-supply elasticity, home production, gender