Effects of uncertainty and risk on the allocation of time of married women

This article develops a model in which the existence of uncertainty in the rate of return to household production is shown to reduce the number of hours allocated to work at home. Empirically, the implications of the theoretical model are tested for married women with data from the Panel Study of Income Dynamics. The findings indicate that uncertainty variables are significant determinants both of participation in the market and of hours allocated to work, home work, and leisure. Specifically, permanent income and measures of uncertainty exert a stronger influence on the allocation of time of married women than do transitory changes in income. In addition, women for whom the probability of divorce is high are both more likely to work in the market and to work more hours in this sector than are women for whom the probability of divorce is low.She is currently engaged in research on a comparative crossnational analysis of family policy.