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Testing the Family "Common Preference" Model for Immigrant and Non-Immigrant Women's Labour Supply

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  • Urvashi Dhawan Biswal
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    Abstract

    The objective of this paper is to test the "income-pooling" hypothesis implicit in the "common preference" model of the family for immigrant and non-immigrant, married women in Canada. We employ two cross-sections of the Family Expenditure Survey - 1986 and 1992. The hypothesis is tested against the "bargaining" model which belongs to an alternate class of family models known as "collective" models. Consistent with previous findings, we find that the pooling hypothesis is rejected for non-immigrant women. In addition, we find that the pooling hypothesis is also rejected for immigrant women. The rejection of the pooling hypothesis implies that the transfer income received by a wife and the transfer income received by a husband have different effects on labour supply. This has important policy implications as to the effect on women's labour supply of transfers received by her or her spouse under family policies such as the Child Tax Benefit in Canada.

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    Bibliographic Info

    Article provided by University of Toronto Press in its journal Canadian Public Policy.

    Volume (Year): 25 (1999)
    Issue (Month): s1 (November)
    Pages: 95-114

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    Handle: RePEc:cpp:issued:v:25:y:1999:i:s1:p:95-114

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    1. Thomas Mroz, . "The Sensitivity of an Empirical Model of Married Women's Hours of Work to Economic and Statistical Assumptions," University of Chicago - Population Research Center 84-8, Chicago - Population Research Center.
    2. Lundberg, Shelly & Pollak, Robert A, 1993. "Separate Spheres Bargaining and the Marriage Market," Journal of Political Economy, University of Chicago Press, vol. 101(6), pages 988-1010, December.
    3. Chiappori, Pierre-Andre, 1988. "Rational Household Labor Supply," Econometrica, Econometric Society, vol. 56(1), pages 63-90, January.
    4. T. Paul Schultz, 1990. "Testing the Neoclassical Model of Family Labor Supply and Fertility," Journal of Human Resources, University of Wisconsin Press, vol. 25(4), pages 599-634.
    5. Phipps, S.A. & Burton, P.S., 1992. "What's Mine is Yours?: The Influence of Male and Female Incomes on Patterns of Household Expenditure," Department of Economics at Dalhousie University working papers archive 92-12, Dalhousie, Department of Economics.
    6. Fortin, B. & Lacroix, G., 1993. "A Test of the Neoclassical and Collective Models of Household Labour Supply," Papers 9335, Laval - Recherche en Politique Economique.
    7. Amemiya, Takeshi, 1984. "Tobit models: A survey," Journal of Econometrics, Elsevier, vol. 24(1-2), pages 3-61.
    8. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
    9. Christopher Worswick, 1996. "Immigrant Families in the Canadian Labour Market," Canadian Public Policy, University of Toronto Press, vol. 22(4), pages 378-396, December.
    10. Lundberg, Shelly J, 1988. "Labor Supply of Husbands and Wives: A Simultaneous Equations Approach," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 224-35, May.
    11. Baker, Michael & Benjamin, Dwayne, 1994. "The Performance of Immigrants in the Canadian Labor Market," Journal of Labor Economics, University of Chicago Press, vol. 12(3), pages 369-405, July.
    12. Worswick, C., 1996. "Immigrant Families in Canadian labour Market," Department of Economics - Working Papers Series 504, The University of Melbourne.
    13. Phipps, S.A. & Burton, P.S., 1992. "What's Mine is Yours?: The Influence of Male and Female Incomes on Patterns of Household Expenditure," Department of Economics at Dalhousie University working papers archive 92-12, Dalhousie, Department of Economics.
    14. Shelley A. Phipps & Peter S. Burton, 1996. "Collective Models of Family Behaviour: Implications for Economic Policy," Canadian Public Policy, University of Toronto Press, vol. 22(2), pages 129-143, June.
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