The labour- force participation rate of married woman has more than doubled over the last 50 years. One economic influence on this rate was the increase in women's wages over the period. Another economic influence was the increase in men's wages, which raised the standard of living for most married woman.
a. Using an indifference-curve diagram, show and then explain how a rise in the income of a husband can lead to a fall in the number of hours worked by his wife. What assumption do you need to make about leisure to get this result?
b. Using another indifference-curve diagram, show and then explain how a rise in female wages affects a woman's decision of how many hours to work.