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Married with Children: A Collective Labor Supply Model with Detailed Time Use and Intrahousehold Expenditure Information

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Author Info

  • Cherchye, L.J.H.
  • Rock, B. de
  • Vermeulen, F.M.P.

    (Tilburg University, Center for Economic Research)

Abstract

We propose a collective labor supply model with household production that generalizes an original model of Blundell, Chiappori and Meghir (2005). In our model, adults' individual preferences do not only depend on own leisure and individual private consumption of market goods. They also depend on the con- sumption of domestic goods, which are produced by combining goods bought at the market with individuals' time. We apply our model to new and unique data on Dutch couples with children. The data contains detailed information about the spouses' time use and the intrahousehold allocation of all expendi- tures. Our application uses a novel estimation strategy that builds upon the familiar two-stage allocation representation of the collective model. We obtain interesting (and plausible) empirical results. Spouses' preferences depend on the consumption of domestically produced goods (including children's welfare). Next, Pareto weights depend on variables like the individual wages and the share in the household’s nonlabor income. Finally, and perhaps surprisingly, we do not find evidence that mothers care more for their children than fathers.

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Bibliographic Info

Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2010-99.

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Date of creation: 2010
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Handle: RePEc:dgr:kubcen:201099

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Web page: http://center.uvt.nl

Related research

Keywords: collective model; labor supply; time use; public goods; household production;

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References

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  1. Browning, Martin & Francois Bourguignon & Pierre-Andre Chiappori & Valerie Lechene, 1994. "Income and Outcomes: A Structural Model of Intrahousehold Allocation," Journal of Political Economy, University of Chicago Press, vol. 102(6), pages 1067-96, December.
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Citations

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Cited by:
  1. Laurens CHERCHYE & Bram DE ROCK & Arthur LEWBEL & Frederic VERMEULEN, 2012. "Sharing rule identification for general collective consumption models," Center for Economic Studies - Discussion papers ces12.05, Katholieke Universiteit Leuven, Centrum voor Economische Studiën.
  2. Angelov, Nikolay & Johansson, Per & Lindahl, Erica, 2013. "Is the persistent gender gap in income and wages due to unequal family responsibilities?," Working Paper Series 2013:3, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  3. Laurens Cherchye & Thomas Demuynck & Bram De Rock & Frederic Vermeulen, 2014. "Household Consumption When the Marriage is Stable," Working Papers ECARES ECARES 2014-21, ULB -- Universite Libre de Bruxelles.
  4. Martin Browning & Thomas Crossley & Joachim Winter, 2014. "The measurement of household consumption expenditures," IFS Working Papers W14/07, Institute for Fiscal Studies.
  5. Laurens CHERCHYE & Bram DE ROCK & Jeroen SABBE & Ewout VERRIEST, 2010. "Commitment in intertemporal household consumption: a revealed preference analysis," Center for Economic Studies - Discussion papers ces10.33, Katholieke Universiteit Leuven, Centrum voor Economische Studiën.
  6. Catherine Haeck & Pierre Lefebvre & Xiaozhou Zhou, 2014. "The Power of the Purse: New Evidence on the Distribution of Income and Expenditures within the Family from a Canadian Experiment," Cahiers de recherche 1415, CIRPEE.
  7. Jeremy Lise & Ken Yamada, 2014. "Household Sharing and Commitment: Evidence from Panel Data on Individual Expenditures and Time Use," IFS Working Papers W14/05, Institute for Fiscal Studies.
  8. Martina Menon & Elisa Pagani & Federico Perali, 2012. "A Characterization of Collective Individual Expenditure Functions," Working Papers 20/2012, University of Verona, Department of Economics.
  9. Sabrina Bruyneel & Laurens Cherchye & Bram De Rock, 2012. "Collective consumption models with restricted bargaining weights: an empirical assessment based on experimental data," Review of Economics of the Household, Springer, vol. 10(3), pages 395-421, September.
  10. Jaime Andres Sarmiento Espinel, 2012. "Children and non-participation in a model of collective household labor supply," Serie documentos de trabajo del Centro de Estudios Económicos 2012-14, El Colegio de México, Centro de Estudios Económicos.
  11. Majlesi, Kaveh, 2014. "Labor Market Opportunities and Women's Decision Making Power within Households," Working Papers 2014:4, Lund University, Department of Economics.
  12. Jaime Andrés Sarmiento Espinel, 2012. "Parental investment in their children’s education," Serie documentos de trabajo del Centro de Estudios Económicos 2012-09, El Colegio de México, Centro de Estudios Económicos.
  13. Wiktor Adamowicz & Mark Dickie & Shelby Gerking & Marcella Veronesi & David Zinner, 2013. "Household Decision-Making and Valuation of Environmental Health Risks to Parents and their Children," NCEE Working Paper Series 201306, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised Dec 2013.
  14. Vellore Arthi & James Fenske, 2013. "Labour and Health in Colonial Nigeria," Oxford University Economic and Social History Series _114, Economics Group, Nuffield College, University of Oxford.
  15. Kalenkoski, Charlene M. & Lacombe, Donald J., 2014. "Using Spatial Econometric Techniques to Analyze the Joint Employment Decisions of Spouses," IZA Discussion Papers 8050, Institute for the Study of Labor (IZA).
  16. James Fenske & Vellore Arthi, 2013. "Labour and Health in Colonial Nigeria," Economics Series Working Papers Number 114, University of Oxford, Department of Economics.

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