Household Formation, Female Labor Supply, and Savings

In this paper, we aim to quantify the impact of changing family structures on labor supply and savings in Western societies. Our dynamic general equilibrium model features both genders, and it takes into account changes in marital status as a stochastic process. The numerical results indicate that c...

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Published in:	The Scandinavian journal of economics Vol. 118; no. 4; pp. 868 - 911
Main Authors:	Fehr, Hans, Kallweit, Manuel, Kindermann, Fabian
Format:	Journal Article
Language:	English
Published:	Oxford Blackwell Publishing Ltd 01-10-2016 John Wiley & Sons Ltd
Subjects:	Economic models Economic theory Equilibrium Female employees Germany Home production Households J12 J22 Labor economics Labor supply Labour economics Labour supply life-cycle model marital risk stochastic general equilibrium Studies Germany
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Abstract	In this paper, we aim to quantify the impact of changing family structures on labor supply and savings in Western societies. Our dynamic general equilibrium model features both genders, and it takes into account changes in marital status as a stochastic process. The numerical results indicate that changes in household formation can partly explain the reallocation of male and female labor supply observed during the last decades in Germany. We also find a negative impact on capital accumulation, and we show that a combination of higher marital risk and a narrowing gender wage gap can explain the changes in hours ratios between single and married men and women.
AbstractList	In this paper, we aim to quantify the impact of changing family structures on labor supply and savings in Western societies. Our dynamic general equilibrium model features both genders, and it takes into account changes in marital status as a stochastic process. The numerical results indicate that changes in household formation can partly explain the reallocation of male and female labor supply observed during the last decades in Germany. We also find a negative impact on capital accumulation, and we show that a combination of higher marital risk and a narrowing gender wage gap can explain the changes in hours ratios between single and married men and women. Abstract In this paper, we aim to quantify the impact of changing family structures on labor supply and savings in Western societies. Our dynamic general equilibrium model features both genders, and it takes into account changes in marital status as a stochastic process. The numerical results indicate that changes in household formation can partly explain the reallocation of male and female labor supply observed during the last decades in Germany. We also find a negative impact on capital accumulation, and we show that a combination of higher marital risk and a narrowing gender wage gap can explain the changes in hours ratios between single and married men and women. In this paper, we aim to quantify the impact of changing family structures on labor supply and savings in Western societies. Our dynamic general equilibrium model features both genders, and it takes into account changes in marital status as a stochastic process. The numerical results indicate that changes in household formation can partly explain the reallocation of male and female labor supply observed during the last decades in Germany. We also find a negative impact on capital accumulation, and we show that a combination of higher marital risk and a narrowing gender wage gap can explain the changes in hours ratios between single and married men and women. Reprinted by permission of Blackwell Publishers
Author	Fehr, Hans Kindermann, Fabian Kallweit, Manuel
Author_xml	– sequence: 1 givenname: Hans surname: Fehr fullname: Fehr, Hans email: hans.fehr@uni-wuerzburg.de organization: University of Wuerzburg, DE-97070 Wuerzburg, Germany – sequence: 2 givenname: Manuel surname: Kallweit fullname: Kallweit, Manuel email: manuel.kallweit@svr-wirtschaft.de organization: German Council of Economic Experts, DE-65180 Wiesbaden, Germany – sequence: 3 givenname: Fabian surname: Kindermann fullname: Kindermann, Fabian email: fabian.kindermann@uni-bonn.de organization: University of Bonn, DE-53113 Bonn, Germany
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Cites_doi	10.1146/annurev-soc-071811-145457 10.1162/154247603322391305 10.1093/oep/gpq007 10.1016/j.red.2009.11.004 10.1016/j.econlet.2012.08.004 10.1257/jep.21.2.27 10.1086/656632 10.1016/0165-1765(86)90168-0 10.1162/jeea.2005.3.2-3.755 10.1016/j.red.2008.03.001 10.1111/j.1467-9442.2007.00479.x 10.1086/669820 10.1111/1468-0475.00079 10.1257/aer.98.4.1517 10.1007/s10645-007-9080-z 10.1007/s00148-009-0256-5 10.1086/260970 10.1016/j.euroecorev.2012.08.007 10.1016/j.jmoneco.2006.12.008 10.1111/j.1740-1461.2008.00143.x 10.1007/s11150-011-9127-4 10.1016/j.jpubeco.2009.05.002 10.1111/j.1467-9396.2009.00835.x 10.1111/j.1467-9442.2011.01673.x 10.1111/j.1468-2354.2008.00523.x 10.1093/restud/rdr049 10.1111/0034-6527.00326 10.1006/redy.2002.0157 10.1093/rfs/hhp020 10.2139/ssrn.943467 10.1016/j.jmoneco.2003.06.005 10.1111/1468-2354.t01-1-00043 10.2139/ssrn.1533460 10.1111/1468-2354.t01-1-00091 10.1353/jhr.2013.0013 10.1006/redy.2002.0190 10.1007/s00148-006-0118-3 10.1016/j.red.2006.06.001
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Notes	istex:E5F41776CD5786D1FD3F3429561073D578D4F4E2 ArticleID:SJOE12154 We are grateful for helpful comments from Karl Ove Aarbu, Johann Brunner, Alexia Fürnkranz-Prskawetz, Alfred Maussner, Lex Meijdam, two anonymous referees, and seminar participants at the universities of Augsburg and Lund, DIW Berlin, NETSPAR Pension Workshop, CESifo Munich, and the annual congresses of the German Economic Association and ESPE. Financial support from NETSPAR and the Fritz Thyssen Stiftung is gratefully acknowledged. ark:/67375/WNG-DKT4NS0T-R We are grateful for helpful comments from Karl Ove Aarbu, Johann Brunner, Alexia Fürnkranz‐Prskawetz, Alfred Maussner, Lex Meijdam, two anonymous referees, and seminar participants at the universities of Augsburg and Lund, DIW Berlin, NETSPAR Pension Workshop, CESifo Munich, and the annual congresses of the German Economic Association and ESPE. Financial support from NETSPAR and the Fritz Thyssen Stiftung is gratefully acknowledged. ObjectType-Article-1 SourceType-Scholarly Journals-1 ObjectType-Feature-2 content type line 23
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Snippet	In this paper, we aim to quantify the impact of changing family structures on labor supply and savings in Western societies. Our dynamic general equilibrium... Abstract In this paper, we aim to quantify the impact of changing family structures on labor supply and savings in Western societies. Our dynamic general...
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SubjectTerms	Economic models Economic theory Equilibrium Female employees Germany Home production Households J12 J22 Labor economics Labor supply Labour economics Labour supply life-cycle model marital risk stochastic general equilibrium Studies
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Title	Household Formation, Female Labor Supply, and Savings
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