Wives' Labor Force Behavior and Major Family Expenditures

As the labor force participation of married women has increased dramatically since World War II, there has been increased speculation about the effect of wives’ employment on major family expenditures. This study examines working-wife (W-W) and non-working wife (N-W-W) family purchases of time-saving durables, other durables, hobby and recreation items, vacations, and college education. Discriminant analysis is used to investigate the purchase decision (whether an item was purchased) and regression analysis, the expenditure decision (how much was spent given an item was purchased). Size of total family income and whether the family moved house recently, but not wife’s labor force behavior, were important in the purchase decision. Income and assets, but not wife’s labor force behavior, were significant in the expenditure decision.