The effect of increased labor force participation of married women on the distribution of family income in the Netherlands

In this article we analyse the income equalizing effect of wives' income on the combined income of husband and wife in The Netherlands. We will use the Theil coefficient as a measure of inequality. After some preliminary remarks have been made and relevant data have been presented, the Theil coefficient is decomposed into a number of components. Whereas theory concludes that the effect of wives' income on the distribution of family income should be less equalizing after about 1970, it appears that this does not hold true for the whole period under investigation.