Abstract
this paper presents a structural model of labor-force participation for two adults families. We estimate jointly the participation of both partners, taking into account unobserved wages of nonworkers. Family utility depends on the household net resources in each possible state. The tax-benefit system is modeled as precisely as possible and the left censoring induced by the minimum wage is explicitly taken into account. The results are based upon french cross-section data from 1999 and are illustrated by several policy simulations (e.g. abolishing certain family benefits, modifying income maintenance programs). We provide estimates for elasticities of participation with respect to labor cost. Classification jel : j21, j31, j38.
| Translated title of the contribution | Labor-force participation in households with two adults |
|---|---|
| Original language | French |
| Pages (from-to) | 1149-1179 |
| Number of pages | 31 |
| Journal | Revue Economique |
| Volume | 53 |
| Issue number | 6 |
| DOIs | |
| Publication status | Published - 1 Dec 2002 |
| Externally published | Yes |
