§ VI A Synthetic Model of Labor Supply for type A Household--Refinement of precision of the estimates of the parameters using thesynthetic model--So far, the analysis has focused on the wives' (non-principal potentialearners') acceptance and rejection of employment opportunity offered by firms .There are, however, earning opportunities without being employed by theemployers. Indeed, a number of working wives other than employees (selfemployedwives) are found in the FIES data. Hence, a comprehensive theory oflabor supply should originally be able to treat the earning behavior of selfemployed.wives. From this point of view, the theory of wives' labor supplybehavior developed so far is a first approximation in that it only describeswives' acceptance or rejection of employee status. (Hereafter, the two kinds ofworking wives are distinguished by the phrases employee wives and self employedwives). As previously, we used the simple model of labor supply theory toestimate preference parameters. However, the results in section V seem toshow that we need a more precise theory of labor supply, which should be ableto clarify the behavior of self employed as well as employee wives . Hence, amore precise model of wives' labor supply is developed in this section .
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