Purpose – The purpose of this paper is to critically review the literature to assess the relevance of the S-shaped model of family labor supply for industrialized countries. Design/methodology/approach – Studies use a wide variety of methodologies and therefore are not readily comparable,...

When the labor supply schedule is bending forward at low wage levels, the average cost curve of firms does the same. This leads to the possibility of multiple equilibria, in particular for monopolists, thereby opening a broader range of options and keeping non-profitable firms in business....

When the labor supply schedule is bending forward at low wage levels, the average cost curve of firms does the same. This leads to the possibility of multiple equilibria, in particular for monopolists, thereby opening a broader range of options and keeping non‐profitable firms in business....

Purpose – The purpose of this paper is to critically review the literature to assess the relevance of the S‐shaped model of family labor supply for industrialized countries. Design/methodology/approach – Studies use a wide variety of methodologies and therefore are not readily comparable,...