chapter  4
22 Pages

A Model of Labour Supply, Household Production and Marriage

ByShoshana Grossbard-Shechtman

The new household economics (NHE) is more than 40 years old. Since its beginnings in 1962, the study of labour supply has been among its major applications. It is then that Jacob Mincer started the NHE tradition by publishing a model of married women’s labour force participation (LFP) that expanded the choice between leisure and goods to include two ways by which goods are produced: commercially by firms, or in household production. A major implication of Mincer’s analysis was that the effects of earnings on married women’s LFP depend on whether it is the husband’s earnings or the wife’s earnings that are changing.