Department of Economics Series Ref: 325

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Department of Economics Series Ref: 325

Division of Household Labor and Cross-Country Differences in = Household=20 Formation Rates

Almudena Sevilla-Sanz =

ABSTRACT

This paper explains the existing cross-country differences in = household=20 formation rates in industrialized countries by highlighting how an = individual`s=20 probability to form a household may be affected by social norms toward = the=20 household division of labor. Because social norms are to a large extent = enforced=20 through non-market interactions they are difficult to isolate = empirically. Two=20 identification strategies are proposed. First, a diff-in-diff like = approach is=20 used for the identification of the effect of social norms net of other=20 country-specific and time varying factors. A second identification = strategy uses=20 an individual`s reported attitudes toward the household division of = labor to=20 allow for the identification of the effect of social norms net of = individual=20 preferences. Empirical results support the predictions of a household = formation=20 model where less egalitarian social norms decrease the supply of men in = the=20 household market by increasing a man`s cost of providing household = labor. Both=20 men and women living in more egalitarian countries have, everything else = equal,=20 a higher probability of forming a household. Furthermore, consistent = with the=20 theory, individual attitudes run opposite to social norms for the case = of women.=20 Whereas ceteris paribus a more egalitarian woman has a lower probability = of=20 forming a household, a woman living in a more egalitarian country has, = everthing=20 else equal, a higher probability of forming a household.

April, 2007

JEL Classification Numbers: D13, J0, J1, J2, Z13

Keywords: Household formation, Marriage markets, = Division of=20 household labor, Household specialization, Social norms

Full Paper: http:= //www.economics.ox.ac.uk/Research/wp/pdf/paper325.pdf

Return to = Working=20 Papers Main Page

Page Owned by: Senior = Secretary

Comments on content should be sent to the page's = owner,=20 comments on format to webmaster@economics.ox.ac.uk=

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