Women’s earning power and the “double burden” of market and household work

Abstract

Bargaining theory predicts that married women who experience a relative improvement in their labor market position should experience a comparative gain within their marriage. However, if renegotiation possibilities are limited by institutional mechanisms that achieve long-term commitment, the opposite may be true, particularly if women are specialized in household activities and the labor market allows comparatively more flexibility in their labor supply responses. Evidence from the German Socio-Economic Panel indeed shows that, as long as renegotiation opportunities are limited, comparatively better wages for women exacerbate their “double burden” of market and household work