Why gender norms matter

This study examines the influence of gender norms on household behaviour and welfare. Using Japanese household data, we find that households with a conventional norm on gender roles spend more time on housework and less money on family‐common goods. To understand the underlying mechanism, we construct a collective labour supply model that explicitly introduces gender norms. We show that an inefficient ratio of wives' household time to that of husbands leads to an increase in the shadow price of domestic goods, through which the norm distorts the time and money allocated to home production and decreases household welfare.