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about married women.
And let's just posit,
hypothetically, how big we
think their substitution and
income effects would be.
Let's start with substitution
effect.
Do we think the substitution
effect would be bigger?
This is the change in the wage
holding utility constant.
Do we think that would have a
bigger effect on leisure and,
therefore, labor for men
or for women and why?
Don't yell it out.
Somebody, raise their
hand and tell me.
Do we think that the
substitution effect would be
bigger for men or
women and why?
Remember the name.
It's the substitution effect.
That's the key to the answer.
Yeah.
AUDIENCE: I think it would be
the same, because they each
have equal use for the goods.
Maybe their income effect
would be different.
PROFESSOR: OK.
[UNINTELLIGIBLE PHRASE].
They each have equal
use for the goods.
Well let's deal with where
the substitution
effect comes from.
Let's break it down.
So you're someone
who's deciding.
You've got you and your wife,
and you're each deciding how
to respond to a change
in the wage.
Now, you both value the
goods the same.
But it's goods versus leisure.
What's the other feature
that you're going
to be thinking about?
Think about a married man
40 years ago, and
the wage goes down.
AUDIENCE: They have
to work more.
PROFESSOR: No.
We're just doing substitution
effects.
That's unambiguous.
If the goes down,
they work less.