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Does Time-Use Data Support the Unitary Model? A Test using Swedish Time-Use Data from 1984 and 1993

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Author Info
Hallberg, D.

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Abstract

Mainly because of data limitations, the unitary model (dating back to Becker, among others) has been the common-used theoretical framework in microanalysis of the household labor supply. Because of its simplicity, the household members are assumed to allocate time and consumption in consensus, having the implication that it is the households, not the individuals themselves, that are the interesting economic agents. In this paper, I study the household decision to supply labor and test if the unitary model holds. What is subject to a test in this paper is the resulting symmetry of the Slutsky matrix, i.e., that the compensated cross-wage effects are equal. The test uses Swedish time-use data from 1984 and 1993.

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Publisher Info
Paper provided by Uppsala - Working Paper Series in its series Papers with number 2000-14.

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Length: 44 pages
Date of creation: 2000
Date of revision:
Handle: RePEc:fth:uppaal:2000-14

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Postal: UPPSALA UNIVERSITY, DEPARTMENT OF ECONOMICS, S-751 20 UPPSALA SWEDEN.
Phone: + 46 18 471 25 00
Fax: + 46 18 471 14 78
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Web page: http://www.nek.uu.se/
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Related research
Keywords: HOUSEHOLD ; PRODUCTION ; INCOME ; LABOUR;

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Find related papers by JEL classification:
D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

References listed on IDEAS
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  1. Chiappori, Pierre-Andre, 1992. "Collective Labor Supply and Welfare," Journal of Political Economy, University of Chicago Press, vol. 100(3), pages 437-67, June. [Downloadable!] (restricted)
    Other versions:
  2. Aronsson, Thomas & Daunfeldt, Sven-Olov & Wikström, Magnus, 1999. "Estimating Intrahousehold Allocation in a Collective Model With Household Production," UmeÃ¥ Economic Studies 495, Umeå University, Department of Economics.
    Other versions:
  3. Flood, Lennart, 1998. "The Structure of the Tax-system and the Estimation of Labor Supply Models," Working Papers in Economics 1, Göteborg University, Department of Economics. [Downloadable!]
  4. Blundell, Richard & Walker, Ian, 1986. "A Life-Cycle Consistent Empirical Model of Family Labour Supply Using Cross-Section Data," Review of Economic Studies, Blackwell Publishing, vol. 53(4), pages 539-58, August. [Downloadable!] (restricted)
  5. Gronau, Reuben, 1977. "Leisure, Home Production, and Work-The Theory of the Allocation of Time Revisited," Journal of Political Economy, University of Chicago Press, vol. 85(6), pages 1099-1123, December. [Downloadable!] (restricted)
  6. Schultz, T.P., 1990. "Testing The Neoclassical Model Of Family Labor Supply And Fertility," Papers 601, Yale - Economic Growth Center.
  7. Kooreman, Peter & Kapteyn, Arie, 1986. "Estimation of Rationed and Unrationed Household Labour Supply Functions Using Flexible Functional Forms," Economic Journal, Royal Economic Society, vol. 96(382), pages 398-412, June. [Downloadable!] (restricted)
  8. Blomquist, Soren, 1996. "Estimation methods for male labor supply functions How to take account of nonlinear taxes," Journal of Econometrics, Elsevier, vol. 70(2), pages 383-405, February. [Downloadable!] (restricted)
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    Other versions:
  11. Blundell, Richard & Duncan, Alan & Meghir, Costas, 1992. "Taxation in Empirical Labour Supply Models: Lone Mothers in the UK," Economic Journal, Royal Economic Society, vol. 102(411), pages 265-78, March. [Downloadable!] (restricted)
  12. Fitgerald, John M & Swenson, Matthew S & Wicks, John H, 1996. "Valuation of Household Production at Market Prices and Estimation of Production Functions," Review of Income and Wealth, Blackwell Publishing, vol. 42(2), pages 165-80, June.
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  14. Kooreman, Peter & Kapteyn, Arie, 1987. "A Disaggregated Analysis of the Allocation of Time within the Household," Journal of Political Economy, University of Chicago Press, vol. 95(2), pages 223-49, April. [Downloadable!] (restricted)
  15. Hausman, Jerry A, 1978. "Specification Tests in Econometrics," Econometrica, Econometric Society, vol. 46(6), pages 1251-71, November. [Downloadable!] (restricted)
  16. Thomas, D., 1989. "Intra-Household Resource Allocation: An Inferential Approach," Papers 586, Yale - Economic Growth Center.
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    Other versions:
  18. 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. [Downloadable!] (restricted)
  19. Fortin, Bernard & Lacroix, Guy, 1997. "A Test of the Unitary and Collective Models of Household Labour Supply," Economic Journal, Royal Economic Society, vol. 107(443), pages 933-55, July. [Downloadable!] (restricted)
  20. Graham, John W & Green, Carole A, 1984. "Estimating the Parameters of a Household Production Function with Joint Products," The Review of Economics and Statistics, MIT Press, vol. 66(2), pages 277-82, May. [Downloadable!] (restricted)
  21. Apps, Patricia F & Rees, Ray, 1997. "Collective Labor Supply and Household Production," Journal of Political Economy, University of Chicago Press, vol. 105(1), pages 178-90, February.
    Other versions:
  22. Chiappori, Pierre-Andre, 1988. "Rational Household Labor Supply," Econometrica, Econometric Society, vol. 56(1), pages 63-90, January. [Downloadable!] (restricted)
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