Advances in Management and Applied Economics

The Effect of the Spouse's Income on Employment Decisions - a Study Based on Gender Disparities Perspective

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• Abstract

   

  This research employs the Probit model and mediating effect models to investigate the effects and mechanism of the spouse's income on individual employment decisions from the perspective of gender disparities, drawing on data from the 2010-2018 China Household Tracking Survey (CFPS). Findings suggest that the impact of absolute spouse’s income on employment decisions varies by gender, with higher husband income inhibiting the wife's labor force participation and vice versa.

  In terms of the mechanism of influence, the time spent on doing housework and wife's socioeconomic status can explain the cause. It is also discovered that the "independent side" of the family has a negative impact on the labor force participation rate of the "dependent" side, regardless of gender. Thus, the emphasis on narrowing the income gap among genders in the labor market is crucial to increase its labor force participation rate and promoting labor market equity in China.

   

  Keywords: The spouse’s income, Labor force participation, Gender disparities, Employment decisions.