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On the Importance of Household Production in Collective Models : Evidence from U.S. Data

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  • Olivier Donni

    ()
    (THEMA, IZA and Université de Cergy-Pontoise)

  • Eleonora Matteazzi

    ()
    (INED)

Abstract

The present paper develops a theoretical model of labor supply with domestic production. It is shown that the structural components of the model can be identified without using a distribution factor, thereby generalizing the initial results of Apps and Rees (1997) and Chiappori (1997). The theoretical model is then estimated using the ATUS data. The empirical results are compared to those obtained from a similar model without domestic production.

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File URL: http://humcap.uchicago.edu/RePEc/hka/wpaper/Donni_Matteazzi_2011_importance-household-production.pdf
File Function: First version, August 25, 2011
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Bibliographic Info

Paper provided by Human Capital and Economic Opportunity Working Group in its series Working Papers with number 2011-032.

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Date of creation: Aug 2011
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Handle: RePEc:hka:wpaper:2011-032

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Keywords: collective model; market labor supply; domestic labor supply; household production; identification; ATUS;

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References

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  1. Helene Couprie, 2003. "Time allocation within the family: welfare implications of life in a couple," Labor and Demography 0312003, EconWPA.
  2. John Pencavel, 2006. "A Life Cycle Perspective on Changes in Earnings Inequality among Married Men and Women," The Review of Economics and Statistics, MIT Press, vol. 88(2), pages 232-242, May.
  3. Chiappori, Pierre-André & Fortin, Bernard & Lacroix, Guy, 1998. "Household Labor Supply, Sharing Rule and the Marriage Market," Cahiers de recherche 9810, Université Laval - Département d'économique.
  4. Donni, Olivier, 2008. "Labor supply, home production, and welfare comparisons," Journal of Public Economics, Elsevier, vol. 92(7), pages 1720-1737, July.
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  8. Bloemen, Hans G., 2004. "An empirical model of collective household labour supply with nonparticipation," Serie Research Memoranda 0002, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
  9. Olivier Donni, 2001. "Collective Household Labor Supply: Nonparticipation and Income Taxation," Cahiers de recherche CREFE / CREFE Working Papers 140, CREFE, Université du Québec à Montréal.
  10. 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.
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  17. Apps, P.F. & Rees, R., 1993. "Labour Supply, Household Production and Intra-Family Welfare Distribution," The Warwick Economics Research Paper Series (TWERPS) 405, University of Warwick, Department of Economics.
  18. Badi H. BALTAGI & Susan GARVIN & Stephen KERMAN, 1989. "Further Monte Carlo Evidence on Seemingly Unrelated Regressions with Unequal Number of Observations," Annales d'Economie et de Statistique, ENSAE, issue 14, pages 103-115.
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  24. Kapteyn, A.J. & Kooreman, P. & Soest, A.H.O. van, 1990. "Quantity rationing and concavity in a flexible household labor supply model," Open Access publications from Tilburg University urn:nbn:nl:ui:12-364376, Tilburg University.
  25. Chiappori, Pierre-Andre, 1997. "Introducing Household Production in Collective Models of Labor Supply," Journal of Political Economy, University of Chicago Press, vol. 105(1), pages 191-209, February.
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  27. Chiappori, Pierre-André & Donni, Olivier, 2009. "Non-unitary Models of Household Behavior: A Survey of the Literature," IZA Discussion Papers 4603, Institute for the Study of Labor (IZA).
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  33. Paul J. Devereux, 2004. "Changes in Relative Wages and Family Labor Supply," Journal of Human Resources, University of Wisconsin Press, vol. 39(3).
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Cited by:
  1. 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.

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