Worktime Regulations and Spousal Labor Supply

Dominique Goux · Eric Maurin A · Bárbara Petrongolo

116 citations0/0 files storedAmerican Economic Review

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Gender, Labor, and Family Dynamics Labor market dynamics and wage inequality Work-Family Balance Challenges

Abstract

We study interdependencies in spousal labor supply by exploiting the design of the French workweek reduction, which introduced exogenous variation in one's spouse's labor supply, at constant earnings. Treated employees work on average two hours less per week. Husbands of treated women respond by reducing their labor supply by about half an hour, consistent with substantial leisure complementarity, and specifically cut the nonusual component of their workweek, leaving usual hours unchanged. Women's response to their husband's treatment is instead weak and rarely statistically significant, possibly due to heavier constraints in the organization of their workweek. (JEL J16, J22, K31)

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References

1981Nash-Bargained Household Decisions: Toward a Generalization of the Theory of Demand 1988Rational Household Labor Supply 2011Are Micro and Macro Labor Supply Elasticities Consistent? A Review of Evidence on the Intensive and Extensive Margins 2011Adjustment Costs, Firm Responses, and Micro vs. Macro Labor Supply Elasticities: Evidence from Danish Tax Records 2012Bounds on Elasticities With Optimization Frictions: A Synthesis of Micro and Macro Evidence on Labor Supply 1985The Added Worker Effect 2003The Social Multiplier 2000Does Unemployment Insurance Crowd out Spousal Labor Supply?

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