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Collective Models of Labor Supply with Non-convex Budget Sets and Non-Participation: A Calibration Approach

Author

Listed:
  • Nicolas Moreau

    (CEMOI - Centre d'Économie et de Management de l'Océan Indien - UR - Université de La Réunion)

  • Olivier Bargain
  • Myriam Beblo
  • Denis Beninger
  • Richard Blundell
  • Raquel Carrasco
  • Concetta Chiuri Maria
  • François Laisney
  • Valérie Lechene
  • Michal Myck
  • Javier Ruiz-Castillo
  • Frederic Vermeulen

Abstract

We suggest a methodology to calibrate a collective model with household-specific bargaining rules and marriage-specific preferences that incorporate leisure externalities. The empirical identification relies on the assumption that some aspects of individual preferences remain the same after marriage, so that estimation on single individuals can be used. The procedure maps the complete Pareto frontier of each household in the dataset and we define alternative measures of a power index. The latter is then regressed on relevant bargaining factors, including a set of variables retracing the potential relative contributions of the spouses to household disposable income. In its capacity to handle complex budget sets and labor force participation decisions of both spouses, this framework allows the comparison of unitary and collective predictions of labor supply reactions and welfare changes entailed by fiscal reforms in a realistic setting (see Michal Myck et al., 2006; Denis Beninger et al., 2006).
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Nicolas Moreau & Olivier Bargain & Myriam Beblo & Denis Beninger & Richard Blundell & Raquel Carrasco & Concetta Chiuri Maria & François Laisney & Valérie Lechene & Michal Myck & Javier Ruiz-Castillo , 2006. "Collective Models of Labor Supply with Non-convex Budget Sets and Non-Participation: A Calibration Approach," Post-Print hal-01691945, HAL.
  • Handle: RePEc:hal:journl:hal-01691945
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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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