rational household labor supply traditionally household behavior is derived from the maximization of a unique utility function in this paper we propose an alternative approach in which the household is modeled as a two member collectivity taking pareto efficient decisions the consequences of this assumption are analyzed in a three good model in which only total consumption and each member s labor supply are observable if the agents are assumed egoistic i e they are only concerned with their own leisure and consumption it is possible to derive falsifiable conditions upon household labor supplies from both a parametric and nonparametric viewpoint if alternatively agents are altruistic restrictions obtain in the nonparametric context useful interpretation stems from the comparison with the characterization of aggregate demand for a private good economy

labor supply of husbands and wives a simultaneous equations approach labor supply functions for married men and women are formulated as a dynamic simultaneous equations system which is estimated using panel data controlling for fixed individual effects allows marginal labor supply responses to be disentangled from permanent patterns in hours worked due to assortative mating the results suggest that the labor supply of husbands and wives without pre school children is not jointly determined in the short run while families with young children exhibit strong interactions in work hours and negative cross earnings effects neither the joint utility model of family labor supply nor an ad hoc traditional family model is supported by these results the data are for the united states and concern 381 couples from the denver income maintenance experiment excerpt

equilibrium analysis and corporate social responsibility for supply chain integration this paper evaluates the profit of coordination between manufacturers on corporate social responsibility csr under network equilibrium a three tier supply chain network with multiple manufacturers distributors and retailers is considered and several mathematical models are established to investigate behavior and profits in a decentralized supply chain network a centralized supply chain network and a supply chain network with csr the system optimal solution of a supply chain network problem is usually not achievable or stable since each member always tries to maximize its own profit in order to make such a system optimal solution in a stable state and ensure the maximization of total profits a strategy of coordination between manufacturers on csr is proposed the amount of payment in csr of each manufacturer is clearly defined a hybrid diagonalization method with a super network representation is proposed and tested with numerical examples the results show that by taking csr the total profits of the whole supply chain network can increase with or without coordination

marriage cohabitation and women s response to changes in the male wage structure using microdata and grouped data that cover the period 1996 to 2006 we assess the extent to which cohabiting women adjust their labour supply to a lesser extent if any than married women in response to changes in male wages both microdata regressions and grouping estimators unambiguously indicate that cohabiting women respond less to variation in male wages than married women however the magnitude of the difference is not sizeable we also assess the magnitude of married men s and cohabiting men s own wage elasticities and find that they do not differ much combined with the fact that male earnings account for roughly two thirds of family earnings these two findings explain why the impact of changes in male wages on family earnings is very similar for married couples and cohabiting couples in both cases a 10 decline in male wages appears to induce roughly a 6 drop in family earnings

rising u s earnings inequality and family labor supply the covariance structure of intrafamily earnings this paper studies the labor supply contributions to individual and family earnings inequality during the period of rising wage inequality in the early 1980 s working couples have positively correlated labor market outcomes which are almost entirely attributable to permanent factors an intertemporal family labor supply model with this feature is used to estimate labor supply elasticities for husbands of 0 05 and wives of 0 40 this implies that labor supply explains little of the rising annual earnings inequality for married men but over 20 percent of the rise in family inequality and 50 percent of the modest rise in female inequality

taxpayer responses in good times and bad abstract i show that the magnitude of taxpayer responsiveness a key parameter in public finance varies through time using linked administrative data and identifying responses from changes in notches i document a marked decline in responsiveness during the great recession that cannot be explained by increased enforcement i characterize which employee employer pairs are best at reporting tax advantaged incomes workers in industries with above average responsiveness such as construction were disproportionately affected by the recession i show responsiveness also declined for workers who remained matched with the same employers throughout the period

changes in male labor supply and wages in the 1980s both wages and labor supply of poorly educated men fell substantially relative to those of educated men some observers have interpreted this positive association between changes in w

collective labour supply heterogeneity and non participation we present identification and estimation results for the collective model of labour supply in which there are discrete choices censoring of hours and non participation in employment we derive the collective restrictions on labour supply functions and contrast them with restrictions implied by the usual unitary framework using the large changes in the wage structure between men and women in the u k over the last two decades we estimate a collective labour supply model for married couples without children the estimates of the sharing rule show that male wages and employment have a strong influence on bargaining power within couples

an empirical model of discrete and continuous choice in family labor supply because of the interdependent nature of family labor supply decisions the nonnegativity constrai nt on women s hours of work will spill over into other consumption an d labor supply decisions of the family here the author develops an e conometric model of family labor supply that captures this spillove r while addressing the usual censoring issues as well the model i s based on a flexible direct utility function and permits unobservabl e differences in tastes the model is estimated by the maximum likeli hood method on a sample of about 1 200 families from the panel study of income dynamics copyright 1987 by mit press

labor supply differences between married heterosexual women and partnered lesbians a semi parametric decomposition approach i introduction partnered lesbian women have substantially higher labor supply than married women leppel 2008 tebaldi and elmslie 2006 what might account for the sexual orientation gap in partnered female labor supply everyday conversation and casual empiricism suggests that partnered lesbian women have a stronger attachment to the labor market relative to married women because of their choice to have fewer children than their married counterparts yet this has not been formally analyzed the primary goal of this study is to determine the role observable characteristics particularly children play in explaining the differences in labor supply between partnered lesbian women and married women while empirical research on the determinants of partnered lesbian women s labor supply is limited 1 the determinants of married women s labor supply have been studied in great detail see blundell and macurdy 1999 for a survey of the literature in general married women s labor supply is found to be positively related to own wages negatively related to spouse wages and nonlabor income and negatively related to the presence of children particularly young children in the household 2 importantly the same control variables are not found to have the same effect on married men s labor supply in particular men are not responsive to their wife s earnings and tend to have higher labor supply because of the presence of children these findings are consistent with a traditional division of labor into market and household work which results in married men being viewed as the primary earners and married women being viewed as the secondary earners 3 in particular becker 1981 argues that increasing returns from investments in specific human capital encourages a division of labor in market work and household work among household members the sexual division of labor however arises from intrinsically different comparative advantages of men and women e g in the production of children which would determine the direction of the division of tasks by gender this in turn leads to differences in specific human capital accumulation which reinforces the intrinsically different comparative advantages of men and women even in the face of rising female labor force participation increased divorce rates and lower fertility male and female earnings would not be equalized becker 1985 specifically becker argues that married women with household responsibilities e g child care and food preparation would expend less energy on market work make lower investments in market oriented human capital face lower hourly earnings and choose less demanding jobs occupations than married men even when they work the same number of hours because household responsibilities are time and effort intensive relative to leisure and other nonmarket uses of time by men moreover married women would have lower labor force participation than their husbands because of the lower earnings they would face because of less energy expended on market work and lower investments in market oriented human capital and a full equilibrium could involve complete specialization by married women in household production although married men have increased their time spent on child care production there is strong evidence that married women continue to spend more time on child care production than their spouses bianchi robinson and milkie 2006 drago and lee 2008a 2008b kalenkoski ribar and stratton 2005 2007 lundberg pabilonia and ward batts 2007 in addition the sociology literature argues that married women are more likely to identify themselves in the context of family and market work while married men are more likely to identify themselves in the context of market work alone see e g bielby and bielby 1989 finally there is a large literature that tests the specialization hypothesis bardasi and taylor 2008 daniel 1992 gray 1997 hersch and stratton 2000 kenny 1983 loh 1996 stratton 2002

estimating labour supply responses using tax reforms the 1980 s tax reforms and the changing dispersion of wages offer one of the best opportunities yet to estimate labor supply effects nevertheless changing sample composition aggregate shocks the changing composition of the tax paying population and discontinuities in the tax system create serious identification and estimation problems we develop grouping estimators that address these issues our results reveal positive and moderately sized wage elasticities we also find negative income effects for women with children

estimating the effect of unearned income on labor supply earnings savings and consumption evidence from a survey of lottery players this paper provides empirical evidence about the effect of unearned income on earnings consumption and savings using an original survey of people playing the lottery in massachusetts in the mid 1980 s the effects of the magnitude of lottery prizes on economic behavior are analyzed the critical assumption is that among lottery winners the magnitude of the prize is randomly assigned it is found that unearned income reduces labor earnings with a marginal propensity to consume leisure of approximately 11 percent with larger effects for individuals between 55 and 65 years old after receiving about half their prize individuals saved about 16 percent

financial networks with intermediation risk management with variable weights in this paper we develop a framework for the modeling analysis and computation of solutions to multitiered financial network problems with intermediaries in which both the sources of financial funds as well as the intermediaries are multicriteria decision makers in particular we assume that these decision makers seek not only to maximize their net revenues but also to minimize risk with the risk being penalized by a variable weight we make explicit the behavior of the various decision makers including the consumers at the demand markets for the financial products we derive the optimality conditions and demonstrate that the governing equilibrium conditions of the financial network economy can be formulated as a finite dimensional variational inequality problem qualitative properties of the equilibrium financial flow and price pattern are provided a computational procedure that exploits the network structure of the problem is proposed and then applied to several numerical examples

the market work behavior and wages of women 1975 94 changes in the labor market participation and wages of women in the united states are analyzed over the period 1975 1994 using data from the current population survey women are organized into nine birth cohorts five schooling groups and each year of age from 25 to 60 years and their weekly and annual work hours their annual work weeks their employment population ratio and their real average hourly earnings tabulated schooling differences in work behavior have become wider in recent cohorts as have their wages the relationship between work and wages is estimated for women of different ages cohorts and marital status the gap between the work of unmarried and married women has narrowed and the role of wages both the wages of women and those of husbands is examined to determine the extent to which changes in wages account for these movements excerpt

assortative mating and female labor supply this paper investigates married women s hours worked disaggregated by the husband s wage decile in the united states this pattern has changed from downward sloping to hump shaped we show that this development can be explained within a standard household model of labor supply when taking into account trends in assortative mating a quantitative analysis of our model shows that female wage growth and decreasing fertility are primarily responsible for the overall increase in wives hours since the 1970s the fact that the most pronounced increases are observed for wives married to high wage men is a result of trends in assortative mating

family labor supply with taxes over the period 1960 1983 the proportion of federal tax revenue raised by taxation of labor supply has risen from 57 77 percent in this paper we specify and estimate a model of family labor supply which treats both federal and state taxation husbands and wives labor supply are treated jointly rather than in aseparate manner as in previous research a method to calculate the virtual wage for nonworking spouses is used within a utility maximizing framework to treat correctly the joint family labor supply decision joint family efforts are found to be important the efficiency cost deadweight loss of labor taxation is estimated to be 29 6 of tax revenue raised the effect of the new 10 deduction to ease the marriage tax for working spouses leads to a prediction of 3 8 increase in wives labor supply and a 9 decrease in husbands labor supply overall taxes paid are predicted to decrease by 3 4 this abstract was borrowed from another version of this item

small sample bias in synthetic cohort models of labor supply this paper investigates small sample biases in synthetic cohort models repeated cross sectional data grouped at the cohort and year level in the context of a female labor supply model i use the current population survey to compare estimates when group sizes are extremely large to those that arise from randomly drawing subsamples of observations from the large groups i augment this approach with monte carlo analysis so as to precisely quantify biases and coverage rates in this particular application thousands of observations per group are required before small sample issues can be ignored in estimation and sampling error leads to large downward biases in the estimated income elasticity copyright 2007 john wiley sons ltd

taxation and the earnings of husbands and wives evidence from sweden i examine the response of husbands and wives earnings to a tax reform in which husbands and wives tax rates changed independently allowing me to examine the effect of both spouses incentives on each spouse s behavior i analyze the large swedish tax reform of 1990 1991 and find that in response to a compensated fall in one spouse s tax rate each spouse s earnings rise i compare these results to those of simplified econometric models used in the typical setting in which independent variation in each spouse s tax rate is unavailable i find that standard econometric specifications may produce substantially biased estimates

supply chain networks electronic commerce and supply side and demand side risk in this paper we develop a supply chain network model in which both physical and electronic transactions are allowed and in which supply side risk as well as demand side risk are included in the formulation the model consists of three tiers of decision makers the manufacturers the distributors and the retailers with the demands associated with the retail outlets being random we model the optimizing behavior of the various decision makers with the manufacturers and the distributors being multicriteria decision makers and concerned with both profit maximization and risk minimization we derive the equilibrium conditions and establish the finite dimensional variational inequality formulation we provide qualitative properties of the equilibrium pattern in terms of existence and uniqueness results and also establish conditions under which the proposed computational procedure is guaranteed to converge we illustrate the supply chain network model through several numerical examples for which the equilibrium prices and product shipments are computed this is the first multitiered supply chain network equilibrium model with electronic commerce and with supply side and demand side risk for which modeling qualitative analysis and computational results have been obtained

wages and participation during the last 25 years annual hours worked by prime aged men fell by the equivalent of six 40 hour workweeks the reduction was more pronounced among those younger than among mid age workers among black men than among white men and among those with less schooling thus hours worked not only fell but showed increased dispersion increases that paralleled the growth in wage dispersion that has become so familiar to students of trends in wages the argument advanced here is that the correspondence is not coincidental the changes in hours worked are simply the labor supply responses that follow the changes in the structure of wages

does the labour supply of wives respond to husbands wages canadian evidence from micro data and grouped data using micro data and grouped data we assess the extent to which canadian wives adjusted their labour supply in response to changes in husbands wages during the period 1980 2000 grouped data parameters based on weighted least squares and the unbiased error in variables estimator developed by devereux 2004 2007a b yield cross wage elasticities that are substantially higher in absolute value than those derived from ols regressions run on micro data both grouping estimators indicate that the labour supply of canadian wives responded strongly to changes in husbands wages during the 1980s for the 1990s our estimates of wives cross wage elasticity display greater dispersion a l aide de micro donnees et de donnees groupees on etablit jusqu a quel point les epouses canadiennes ont ajuste leur offre de travail en reponse aux changements dans les salaires de leurs epoux au cours de la periode 1980 2000 les parametres pour les donnees groupees derives par la methode des moindres carres ponderes et de l estimateur developpe par devereux 2004 2007a b engendrent des elasticites croisees qui sont substantiellement plus grandes en termes absolus que ceux derives par la methode des moindres carres ordinaires en utilisant des micro donnees les deux estimations montrent que l offre de travail des epouses canadiennes a repondu fortement aux changements dans les salaires des epoux au cours des annees 80 pour les annees 90 les evaluations des elasticites croisees des salaires montrent une plus grande dispersion

does everyone use probabilities the role of cognitive skills what is the role of cognitive skills in decision making under uncertainty we address this question by examining the relationship between responses to survey questions about subjective probabilities of stock market returns and stock holding decisions based on data from the health and retirement study hrs we find that for individuals with lower cognitive skills the association between measured probabilities and decisions is weaker than for individuals with higher cognitive skills additional evidence suggests that individuals with lower cognitive skills are more likely to give heuristic answers to questions about stock return probabilities a likely explanation is that individuals with lower cognitive skills have a fuzzier mental representation of stock returns that cannot be captured by a unique well defined probability distribution in contrast individuals with higher cognitive skills are more likely to act as if subjective probabilities are meaningful measures of uncertainty we discuss whether or not the behavior of the latter can be seen as more rational

collective labor supply and welfare the paper develops a general collective model of household labor supply in which agents are characterized by their own possibly altruistic preferences and household decisions are only assumed to be pareto efficient an alternative interpretation is that there are two stages in the internal decision process agents first share nonlabor income according to some given sharing rule then each one optimally chooses his or her own labor supply and consumption this setting is shown to generate testable restrictions on labor supplies moreover the observation of labor supply behavior is sufficient for recovering individual preferences and the sharing rule up to a constant finally the traditional tools of welfare analysis can be adapted to the new setting

a supply chain network economic model with time based competition abstract this paper presents an integrated model for time cost competition between supply chains with heterogeneous customers the firms in our model can offer various time options for their production service to time sensitive customers this gives rise of a new concept of time based supply chain which we call t chain to be the basic element in the competition and extends the inter supply chain competition to a new dimension of time assuming the customers are heterogeneous in time cost bi criteria decision making we integrate the discrete choice theory into supply chain network competition and formulate the equilibrium conditions as a multinomial logit based variational inequality problem numerical examples are presented for model illustration and managerial insights such as profit maximization for a firm who participates in this supply chain network

marital sorting inequality and the role of female labor supply evidence from east and west germany this paper examines to what extent marital sorting affects cross sectional earnings inequality in germany over the past three decades while explicitly taking into account labor supply choices using rich micro data the observed distribution of couples earnings is compared to a counterfactual of randomly matched spouses hypothetical earnings are predicted based on a structural model of household labor supply for west germany a positive effect of marital sorting on inequality is found after adjusting for labor supply behavior while the effect is limited when earnings are taken as given this means that there is positive sorting in earnings potential which is veiled by relatively low female labor force participation in east germany the impact of marital sorting on inequality is highly disequalizing irrespective of adjusting for labor supply choices this is mainly due to the fact that east german women are much more attached to the labor market

an equilibrium model of the supply chain network under multi attribute behaviors analysis abstract this paper studies a supply chain network scn equilibrium model considering decision makers multi attribute behaviors from the perspective of behavioral finance in this paper an equilibrium model of an uncertain snc is constructed in which retailers choose their decisions according to their risk averse behavior loss averse behavior and regret averse behavior by using different weights to represent retailers attitudes to these three behaviors the retailers multi attribute utility functions are developed the equilibrium conditions of the manufacturers the retailers together with the network are established by the finite dimensional variational inequality formulation three numerical examples are solved in the first numerical example we illustrate the effect of each of these three behaviors on the equilibrium decisions the profits and the utilities of the decision makers in the other two numerical examples we explore the effects of changes in attitudes to these three behaviors on the equilibrium decisions profits and utilities of the decision makers the numerical results show that the equilibrium decisions are affected by each of these three behaviors very much moreover they are sensitive to the changes in attitudes to these behaviors

wages youth employment and school enrollment recent evidence from increases in world oil prices we exploit variation in wage growth induced by increases in world oil prices to estimate the elasticity of young men s labor market participation and school enrollment with respect to after tax wages our main finding is that in the aggregate increased wages have a dual impact they tend to reduce at least temporarily young men s full time university enrollment rates but bring back into the labor market some young men who were neither enrolled in school nor employed contrary to previous research we find little evidence that young men with no high school diploma now leave school in response to increased wages

greater wage inequality reduces average hours of work i argue that rising inequality in offered wages lowers average working hours if labour supply is concave in wages a decrease in the working hours of low paid workers is greater than an increase in working hours of high paid workers furthermore due to low market opportunities some low paid workers may leave the labour force using cps morg data for prime age men i find evidence in support of this explanation i establish empirically the concavity of the labour supply and find evidence that after controlling for the average wage wage inequality has a negative effect on labour supply

changes in relative wages and family labor supply the large changes in relative wages that occurred during the 1980s provide fertile ground for studying the behavioral responses of married couples to the wage changes of husbands and wives i find estimates of own wage and cross wage elasticities for men that are very small the own wage elasticity for women is positive and the cross wage elasticity for women suggests a strong negative response of female labor supply to changes in their husband s wages family labor supply behavior determines how changes in individual wage rates translate into family earnings changes the responses of women to changes in their husband s wages attenuated somewhat the increases in individual wage inequality at the family level the results suggest that the earnings of the wives of low income men would actually have fallen over the decade if women s labor supply did not respond to changes in their husbands wages however assortative mating implies that wage changes of husbands and wives are correlated and so family earnings inequality still grew during the decade of the 1980s

is low priced primary care bad for quality evidence from australian general practice we examine whether patients perceptions of general practitioner gp care varies by the price paid for consultations australian consumer survey data from 2275 individuals were used to analyse the relationship between price and patient experience of gp care using both standard models for count data and a latent class model that distinguishes between patients with high and low quality experiences we find no evidence that lower prices have a negative impact on patients perceptions of gp quality nevertheless some patient characteristics such as age gender and health status play a significant role in quality of care perceptions the results show that australian patients have not had to compromise gp quality as expressed in terms of patient experience when seeking low priced care this supports the view that there are sufficient checks and balances on the gp sector in australia to ensure positive patient experiences even for low cost gp consultations

valuing operational flexibility under exchange rate risk in this paper we develop a stochastic dynamic programming formulation for the valuation of global manufacturing strategy options with switching costs overall we adopt a hierarchical approach first exchange rates are modeled as stochastic diffusion processes that exhibit intercountry correlation second the firm s global manufacturing strategy determines options for alternative product designs as well as supply chain network designs product options introduce international supply flexibility supply chain network options determine the firm s manufacturing flexibility through production capacity and supply chain network linkages third switching costs determine the cost of operational hedging i e the costs associated with reducing downside risks overall the firm maximizes its expected discounted global after tax value through the exercise of product and supply chain network options and or through exploitation of operational flexibility contingent on exchange rate realizations in this environment the firm must trade off fixed operating costs switching costs and the economic benefits derived from exploiting differentials in factor costs and corporate tax rates a multinomial approximation of correlated exchange rate processes is proposed that leads to a consistent and tractable lattice model for this compound option valuation problem we then demonstrate how the global manufacturing strategy planning model framework can be utilized to analyze financial and operational hedging strategies

new estimates of labour supply elasticities for married women in canada 1996 2005 in this article we estimate income and substitution labour supply and participation elasticities for canadian married women using data from the survey of labour and income dynamics 1996 2005 we use the canadian tax and credit simulator ctacs and detailed information on the structure of income at the household level to compute the marginal tax rates faced by each individual we then use these marginal tax rates to compute net own wage spouse wage and nonlabour income we show how the magnitude of the estimated elasticities varies depending on whether net or gross wages and income are used in the estimation procedure and quantify biases caused by using average tax rates instead of marginal tax rates finally because marginal tax rates vary significantly over the sample we use quantile regressions to compare elasticities at different points of the hours distribution overall our results show that public policies now have on average less scope for influencing hours of work than 10 years ago howev

multiperiod effects of corporate social responsibility on supply chain networks transaction costs emissions and risk abstract this paper develops a framework for the analysis of the optimal levels of corporate social responsibility csr activities in a multiperiod supply chain network consisting of manufacturers retailers and consumers manufacturers and retailers determine their production quantities transaction quantities and the amount of social responsibility activities they want to pursue that maximize net return minimize emission and minimize risk over the planning horizon we investigate the interplay of the heterogeneous decision makers and compute the equilibrium pattern of product outputs transactions prices and levels of social responsibility activities the paper provides insights concerning the optimal allocation of resources to csr activities when considering a multiperiod time frame