Wives' Labor Supply and Taxation : a Conditional Preferences Approach

We apply a conditional preferences approach to derive a conditional labor supply function for the wife consistent with a unitary model with non-separable preferences. Our main results are that consumption and wife's work hours are not separable from the husband's labour supply. Further-more we find that the wife's and husband's work hours are complements when men tend to work longer hours than a typical full-time contract.