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Testing the sharing rule in a collective model of discrete labor supply with Spanish data

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  • Jorge Velilla

Abstract

This paper estimates a collective model of discrete labor supply, using data from the Spanish Survey of Household Finances. The model allows identifying a sharing rule of household income. Then, it is used unique information for unemployed wives about intrahousehold transfers to estimate its accuracy. Results show that husbands’ hours of work are conditional on wives’ decisions, which mainly depend on non-labour income. Despite data availability, predicted sharing rules fit the data qualitatively well, and are mainly driven by wives’ potential income. Husbands show low levels of altruism, and non-participation appears to be especially detrimental for wives with high potential income.

Suggested Citation

  • Jorge Velilla, 2020. "Testing the sharing rule in a collective model of discrete labor supply with Spanish data," Applied Economics Letters, Taylor & Francis Journals, vol. 27(10), pages 848-853, June.
    • Handle: RePEc:taf:apeclt:v:27:y:2020:i:10:p:848-853
    DOI: 10.1080/13504851.2019.1646401
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    Cited by:

    1. José Alberto Molina & Jorge Velilla & Helena Ibarra, 2023. "Intrahousehold Bargaining Power in Spain: An Empirical Test of the Collective Model," Journal of Family and Economic Issues, Springer, vol. 44(1), pages 84-97, March.
    2. Belloc, Ignacio & Molina, José Alberto & Velilla, Jorge, 2022. "How does intrahousehold bargaining power impact labor supply? European cross-country evidence (2004-2019)," GLO Discussion Paper Series 1132, Global Labor Organization (GLO).
    3. Pérez Mínguez, José Antonio, 2022. "Oferta laboral en Gran Bretaña: Un enfoque colectivo [Job supply in Great Britain: A collective approach]," MPRA Paper 112743, University Library of Munich, Germany.
    4. Ibarra, Helena & Velilla, Jorge, 2021. "Oferta laboral familiar y negociación intrafamiliar en España: Un test del modelo colectivo [Household labor supply and intrahousehold bargaining: An empirical test of the collective model]," MPRA Paper 108080, University Library of Munich, Germany.

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