Family ties and labor supply

• Autores: Antonia Díaz Rodríguez, María Dolores Guilló Fuentes
• Localización: Investigaciones económicas, ISSN 0210-1521, Vol. 29, Nº 2, 2005, págs. 289-330
• Idioma: inglés
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• Resumen

  • We develop a theoretical model of the household where family ties impose a distortion on the job search incentives of unemployed members and on the young adults' decision of leaving the parental house. We .nd that the search e orts of unemployed family members are strategic substitutes, the young adult leaves the parental house only if his market wage is su ciently high, and a low wage for the young implies that the mother's and the young adult's search e orts are low and, as a result, their probabilities of unemployment are high. The presence of a household good is crucial for these result. The model predictions are roughly consistent with the Spanish evidence.