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Title

Marriage and employment participation with wage bargaining in search equilibrium.

Authors

Bonilla, Roberto; Trejos, Alberto

Abstract

We build an equilibrium search model where married couples make joint decisions on home production and labour market participation and analyse the implications of our results for a frictional marriage market. A worker's bargaining position reflects their productivity, and the productivity and employment status of their spouse. People sometimes accept transitory jobs only to raise the spouse's long‐term wages. Firms sometimes reduce turnover by unilaterally increasing a worker's wage, ensuring that the spouse stays at home.

Subjects

WAGES; EMPLOYMENT; LABOR market; PARTICIPATION; MARRIED people; EQUILIBRIUM

Publication

Scottish Journal of Political Economy, 2021, Vol 68, Issue 4, p517

ISSN

0036-9292

Publication type

Academic Journal

DOI

10.1111/sjpe.12289