PARTICIPATION AND HOURS OF WORK FOR MARRIED WOMEN IN GREAT BRITAIN *

Christine A. Greenhalgh

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

Abstract

THE estimation of labour supply functions for men and women from household survey data has been undertaken by several authors using cross-section data for various years in the U.S. (A collection of such work appears in Cain and Watts, 1974.) Recently some estimates for men in the U.K. have been obtained by Brown et al. (1976) using a small sample of data for 1971. However there are no previous estimates for British women which utilise individual data on participation and hours, although town participation rates have been analysed (Greenhalgh, 1977). In this paper we examine the supply responses of married women using data for British families surveyed in 1971 in the General Household Survey. This is a large, nationally representative sample providing detailed information of hours of work, earnings, family and personal characteristics for individuals and households in Great Britain. Details of data definitions and sample selection are given in the Appendix. In part I, the model is outlined and the estimation problems are discussed. Two procedures are suggested for obtaining estimates of wage and income elasticities, together with the effects of other variables which may be thought to affect preferences for work and leisure. In part II, the empirical estimates are presented and both methods yield positive wage elasticities (close to unity) and negative income elasticities (mlmus two-thirds) for total labour supply. The separate components relating to probability of participation and to hours of work of participants reveal smaller wage and income elasticities for the former. The effects of children, colour, qualifications and geographical location on participation and hours of work are also investigated in detail. In the concluding section, the implications of some of the findings for government wage and tax policy are presented.

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References

1970The Economics of Labor Force Participation 1974The Estimation of Income and Substitution Effects in a Model of Family Labor Supply 1970Wages, income and hours of work in the U.S. labor force,1980Married Women's Participation and Hours 1979Labour Supply and Progressive Taxes

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1985Tax revenue and the marginal cost of public funds in Sweden 2011The Employment Effects of Recession on Couples in the UK: Women's and Household Employment Prospects and Partners’ Job Loss 1983A Cross‐Section Analysis of the Labour Force Participation of Married Women in Australia 1987A stock‐flow consistent macro‐econometric model of the UK economy—part I 2014‘To help keep the home going’: female labour supply in interwar London 1987The Withdrawal from Paid Work of the Wives of Unemployed Men: A Review of Research

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