Why are Married Men Working so Much? The Macroeconomics of Bargaining between Spouses

63 Pages Posted: 20 Jul 2007

See all articles by John Knowles

John Knowles

University of Pennsylvania - Department of Economics; IZA Institute of Labor Economics

Date Written: July 2007

Abstract

The rise in per-capita labor over the last 30 years is difficult to explain in a standard macroeconomic model because rising wages of women should have lead to a large rise in husband's leisure. This paper argues that home production and bargaining are both essential for understanding these trends, and develops an equilibrium model of marriage and bargaining. Calibration to US data suggests that the bargaining position of husbands has deteriorated with the closing of the gender gap in wages, that the decline of home-equipment prices plays a role in the rise in per-capita hours, and that the labor trends are consistent with stationarity along a balanced-growth path.

Keywords: general aggregative models: neoclassical, time allocation and labor supply, economics of gender, marriage, marital dissolution

JEL Classification: E13, J12, J16, J20, J22

Suggested Citation

Knowles, John, Why are Married Men Working so Much? The Macroeconomics of Bargaining between Spouses (July 2007). IZA Discussion Paper No. 2909, Available at SSRN: https://ssrn.com/abstract=1000895

John Knowles (Contact Author)

University of Pennsylvania - Department of Economics ( email )

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