Taking into account inter-dependence within the family, we investigate the relationship
between part-time work and happiness. We use panel data from the new Household, Income
and Labor Dynamics in Australia Survey. Our analysis indicates that part-time women are
more satisfied with working hours than full-time women. Partnered women’s life satisfaction is
increased if their partners work full-time. Male partners’ life satisfaction is unaffected by their
partners’ market hours but is increased if they themselves are working full-time. This finding
is consistent with the gender identity hypothesis of Akerlof and Kranton (2000).