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Title: The Joint Determination of Household Membership and Market Work: The Case of Young Men
Resulting in 1 citation.
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McElroy, Marjorie B. |
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The Joint Determination of Household Membership and Market Work: The Case of Young Men Journal of Labor Economics 3,3 (July 1985): 293-316. Also: http://www.jstor.org/stable/2534843 Cohort(s): Mature Women, Older Men, Young Men Publisher: University of Chicago Press Keyword(s): Bargaining Model; Behavior; Employment, Youth; Family Influences; Modeling, Probit; Pairs (also see Siblings); Wages Labor supply and household membership are systematically related and jointly chosen. The Nash bargaining model of family behavior of McElroy and Horney (1981) is used to specify stochastic structural relationships (two indirect utility functions, a market and a reservation wage function) that jointly determine work consumption, and household membership. The maximum likelihood estimates of the implied trinomial probit model differ sharply from those obtained when either market work or household membership is taken as exogenous. This application to white male youths from a matched sample drawn from three National Longitudinal Surveys shows the insurance function of families. Parents insure their sons against poor market opportunities: in the face of poor market opportunities a son may return to his parents' household. His parents share in the utility loss and thereby cushion the son's utility loss. |
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Bibliography Citation
McElroy, Marjorie B. "The Joint Determination of Household Membership and Market Work: The Case of Young Men." Journal of Labor Economics 3,3 (July 1985): 293-316.
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