Collective Labour Supply: Heterogeneity and Non-Participation

Richard W. Blundell · Pierre‐André Chiappori · Thierry Magnac · Costas Meghir

268 citations0/0 files storedThe Review of Economic Studies

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Gender, Labor, and Family Dynamics Labor market dynamics and wage inequality Work-Family Balance Challenges

Abstract

We present identification and estimation results for the “collective” model of labour supply in which there are discrete choices, censoring of hours, and non-participation in employment. We derive the collective restrictions on labour supply functions and contrast them with restrictions implied by the usual “unitary” framework. Using the large changes in the wage structure between men and women in the U.K. over the last two decades, we estimate a collective labour supply model for married couples without children. The estimates of the sharing rule show that male wages and employment have a strong influence on bargaining power within couples.

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References

1999Labor Supply: A Review of Alternative Approaches 1990Intra-Household Resource Allocation: An Inferential Approach 1992Collective Labor Supply and Welfare 1988Rational Household Labor Supply 2003Grandmothers and Granddaughters: Old-Age Pensions and Intrahousehold Allocation in South Africa 1996Gender, Agricultural Production, and the Theory of the Household 1998Efficient Intra-Household Allocations: A General Characterization and Empirical Tests 1994Income and Outcomes: A Structural Model of Intrahousehold Allocation

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2011Consumption Inequality and Intra-household Allocations 2008Labour Supply and Taxes 2012Married with Children: A Collective Labor Supply Model with Detailed Time Use and Intrahousehold Expenditure Information 2008Labor Supply: Are the Income and Substitution Effects Both Large or Both Small?2016Retirement Incentives and Labor Supply 2006Health insurance and retirement of married couples

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