Seminario de economía: A Household Search Model of the Labor Market with Home Production

I study the dynamics of labor supply, i.e. the ways households combine labor income with home production or spouses' time allocations in home production. I estimate the model with household-level data from Colombia. Assessing the importance of home production over labor market equilibrium, my findings show that different technologies of combination between labor income and home production change labor supply and time allocations of both spouses. The findings also show some degree of substitution between spouses' home production (which) is necessary for each spouse's labor market participation. Finally, I find that differences in home production between spouses account for a substantial share of the gender participation gap in Colombia.