New model predicts how Italian couples will respond to new policies.
The article introduces a new way to model how couples make decisions about working. Instead of using traditional labor supply functions, the researchers use a method based on preferences. This approach makes it easier to handle complex budget constraints and joint labor decisions. The study includes factors like errors in predicted wages, different preferences among individuals, hidden costs of working, and childcare needs. The researchers use a statistical method to estimate the model and calculate how sensitive married men and women are to changes in their labor supply.