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A Public Good Version of the Collective Household Model: An Empirical Approach with an Application to British Household Data

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Author Info

  • Chris van Klaveren

    ()
    (University of Amsterdam)

  • Bernard M.S. van Praag

    ()
    (University of Amsterdam)

  • Henriette Maassen van den Brink

    (University of Amsterdam)

Abstract

In this paper we consider an empirical collective household model of time allocation for twoearnerhouseholds. The novelty of this paper is that we estimate a version of the collectivehousehold model, where the internally produced goods and the externally purchased goodsare assumed to be public. The empirical results suggest that: (1) Preferences of men andwomen differ; (2) Although there are significant individual variations, on average the utilityfunctions of men and women are equally weighted in the household utility function; (3)Differences in the ratio of the partners' hourly wages are explanatory for how individualutilities are weighted in the household utility function. (4) The female's preference forhousehold production is influenced by family size, but this does not hold for the male; (5)Both the male and the female have a backward-bending labor supply curve; (6) Labor-supplycurves are forward-bending with respect to the partner's wage rate; (7) Our model rejects theunitary Slutsky symmetry condition. This discussion paper has resulted in a publication in the 'Review of Economics of the Household' , 2008, 6(2), 169-91.

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Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 08-018/3.

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Date of creation: 18 Feb 2008
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Handle: RePEc:dgr:uvatin:20080018

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Web page: http://www.tinbergen.nl

Related research

Keywords: collective household models; household behavior; labor supply; intra-household; time allocation;

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References

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Citations

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Cited by:
  1. Bredemeier, Christian & Juessen, Falko, 2012. "Minimum Wages and Female Labor Supply in Germany," IZA Discussion Papers 6892, Institute for the Study of Labor (IZA).
  2. Vivien Procher & Nolan Ritter & Colin Vance, 2014. "Making Dough or Baking Dough? Spousal Housework Responsibilities in Germany, 1992-2011," Ruhr Economic Papers 0472, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  3. Datta Gupta, Nabanita & Stratton, Leslie S., 2008. "Institutions, Social Norms, and Bargaining Power: An Analysis of Individual Leisure Time in Couple Households," IZA Discussion Papers 3773, Institute for the Study of Labor (IZA).
  4. Li, Jinjing & O'Donoghue, Cathal, 2011. "Retirement Choice Simulation in Household Settings with Heterogeneous Pension Plans," IZA Discussion Papers 5866, Institute for the Study of Labor (IZA).
  5. 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.
  6. Wencke Gwozdz & Alfonso Sousa-Poza, 2010. "Explaining Gender Differences in Housework Time in Germany," Journal of Consumer Policy, Springer, vol. 33(2), pages 183-200, June.
  7. Nabanita Datta Gupta & Leslie Stratton, 2010. "Examining the impact of alternative power measures on individual time use in American and Danish couple households," Review of Economics of the Household, Springer, vol. 8(3), pages 325-343, September.
  8. Marcassa Stefania, 2013. "Divorce laws and divorce rate in the US," The B.E. Journal of Macroeconomics, De Gruyter, vol. 13(1), pages 39, August.

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