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elasticity.
But, certainly, the initial
hours are much bigger from men
than for women.
So what does this mean in terms
of the labor supply
curves you would see for married
men and married women
40 years ago?
Based on these facts, what
would you think?
Yeah?
AUDIENCE: They would have
opposite slopes.
PROFESSOR: Yeah.
So, in particular, the female
labor supply curve
would look like what?
It would slope up or down?
AUDIENCE: It would slope up.
PROFESSOR: It would slope up.
You'd have an upward sloping
curve, because you'd have
these big substitution effects
and small income effects.
So it would look much more
like Figure 7-4.
You'd have the big substitution
effect when the
wage goes up and a small
offsetting income effect.
Think about the woman who
is not working at all.
She's now working at
all at $8 an hour.
You raise her wage
to $12 an hour.
She's like, hey, I wasn't
working at all.
So there's no income effect.
But now I'm going to go to
work and make some money.
So it's upward sloping.
But for men, it's going to look
more potentially like
Figure 7-5.
There's a small substitution
effect but a potentially big
income effect or bigger
than women.
Now, how big it is,
that's not clear.
Because, once again, men
have nothing to do
if they don't work.
So it could be this ends up
being bigger and smaller.
It's not clear how big
this ends up being.
But it's at least possible that
you could have men having
a backward-bending or downward