LABOR SUPPLY AND THE WELFARE COSTS OF MARITAL CONFLICT

Marital conflicts can have negative welfare consequences. In this pape r we use an equivalence scale approach to analyze the household labor supply and welfare effects of marital conflict. It might be assumed th at there is a simultaneous relation between labor supply and marital c onflict: increased labor force participation of women may increase mar ital conflict, while spouses may adjust their labor supply because of marital conflict. The empirical results show that such a simultaneous relation exists. Women who participate in the labor market have more c onflicts about the division of household tasks and the care of childre n than non-participating women. On the other hand, marital conflicts c ause women to reduce their labor supply. Finally, it is found that the welfare losses due to marital conflict are substantial.