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Wage Inequality and Family Labor Supply

46 Pages Posted: 25 Jun 1998  

Chinhui Juhn

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

Kevin M. Murphy

University of Chicago; National Bureau of Economic Research (NBER)

Date Written: February 1996

Abstract

Using data from the March CPS and the 1960 Census, this paper describes earnings and employment changes for married couples in different types of households stratified by the husband's hourly wage. While the declines in male employment and earnings have been greatest for low wage men, employment and earnings gains have been largest for wives of middle and high wage men. These findings cast doubt on the notion that married women have increased their labor supply in the recent decades to compensate for the disappointing earnings growth of their husbands. We conclude that own wage effects dominate cross effects between husband and wife in accounting for changes in male and female employment.

Suggested Citation

Juhn, Chinhui and Murphy, Kevin M., Wage Inequality and Family Labor Supply (February 1996). NBER Working Paper No. w5459. Available at SSRN: https://ssrn.com/abstract=3065

Chinhui Juhn (Contact Author)

University of Houston - Department of Economics ( email )

Houston, TX 77204-5882
United States
713-743-3823 (Phone)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Kevin M. Murphy

University of Chicago ( email )

5807 S. Woodlawn Avenue
Chicago, IL 60637
United States
773-702-7280 (Phone)
773-702-2699 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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