LABOR SUPPLY AND CHILD STATUS EFFECTS ON HOUSEHOLD DEMANDS

This study draws attention to empirical evidence for the United Kingdo m and Canada rejecting the separability of household commodity demands from labor supply. As might be anticipated on the basis of these reje ctions, using Canadian data, we find clear patterns in the average exp enditure shares for husband-wife families classified by whether both s pouses, only the man, only the woman, or neither worked. The patterns remain even when the families are further categorized by child-status and by family income. A number of implications of these findings are c onsidered.