Allocation of Time within the Family When the Time Spent Together Matters

Working Papers 96 Haaparanta Pertti

The allocation of time between marital partners who enjoy the time spent together is analyzed. Since the joint time cannot ecxeed what the partner desiring less of its supplies one of the partners is, in general, rationed in joint time if the decision making within the marriage is decentralized. In the model the partner with lower wage is rationed in joint time. It is shown that a reduction in wage differential due to an increase in the lower wage decreases the supply of labour by the better paid while the effect on the lower paid is ambiguous. The joint time definitely increases. An increases in the higher wage increases the private leisure of the partner with lower pay while the impacts on the supply of labour are ambiguous. An crease in general level of wages reduces the supply of labour of both of the partners.