Question

using the theory of labor supply, explain why it would be very difficult for a family with 4 kids to have both parents working

Answer 1

The theory of labor supply refers to the behavior of supply of labors in response of the increase in wage rates. Here, increase in wage rates leads to increase in supply of labor and vice versa. With an increase in wage rates, competition in the labor market increases and both parents as male and female workers, face stiffer competition. If both the parents try to work, then they have to compete strongly and work for the longer hours. As a result, 4 kids in the family will start suffering as both the parents have to remain in office. It makes negative impact upon the family, and one of the parent has to take responsibilities at home. It is the reason to form a conclusion that it is very difficult for both the parents to work in the bigger family with 4 kids.

If wage rate is lower, then opportunity cost of doing work by foregoing the care of kids is very high. It makes one of the parent, to be at home and look-after the kids. This scenario of lower wage, also makes it difficult for both the parents to work.