WHY MARRIED WOMENS LABOR SUPPLY IN THE NETHERLANDS HAS INCREASED

On the basis of cross-section data sets for 1979 and 1987 we determine : 1) the relative contribution of changes in participation and in hour s of work to the increase in married women's labor supply; 2) how much of the change in participation and hours of work is determined by cha nges in preferences and in budget constraints; and 3) the causes of ch anges in market wages and reservation wages. The increase in the avera ge unconditional hours of work is much more due to the rise in the par ticipation rate than to the increase in conditional hours of work. Pre ference changes have contributed positively to the increase in married women's labor force participation over the period 1979-1987, whereas changes in market opportunities have contributed negatively. The chang e in the market wage and the reservation wage can be attributed mainly to changes in the population structure of married women. Changes in t he model structure contributed negatively to the change in the real ma rket and the reservation wage. The positive effect of the change in th e population structure dominates the negative effect of the model stru cture. Finally, participants in the labor market have a comparative wa ge advantage over non-participants. Non-participants are a self-select ing group with a relatively high reservation wage.