The wage gap and the leisure gap for double earner couples

Abstract

Empirical research has consistently shown that, on average, men are paid higher wages than women. At the same time, men enjoy more leisure time than women. We develop a model of private provision of family public goods to analyze whether the wage gap and the leisure gap are related. Within a nonco- operative framework, different bargaining power situations within a couple are considered which lead to different empirical hypotheses. With data from the German Socio-Economic Panel we focus on the leisure gap and the wage gap within double earner couples and in this way are able to discriminate among the theoretical models. Our random effects estimates show that husbands have a stronger bargaining position and this advantage results in them enjoying, other things equal, more leisure time that their wives.