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Household Negotiation and Labor Supply: Evidence from the BHPS

Author

Listed:
  • Andrew Clark

    (DELTA)

  • Hélène Couprie

    (Greqam, Université de la Méditerranéée)

  • Catherine Sofer

    (TEAM, Université Paris 1, Maison des Sciences Economiques)

Abstract

In this paper, we estimate a collective model of household labour supply à la Chiappori on British two-earner couples, using data from the British Household Panel Survey (BHPS). We find that family members do not pool their resources: the unitary model is rejected. We estimate a sharing rule representing the negotiation process inside the household, introducing a number of original distribution factors, such as political and religious involvement and parents’ occupational level. We do not find any significant impact of marriage market opportunities on the balance of power inside the couple. We emphasise that the sharing rule should be interpreted carefully when analysing intra-family inequality issues.

Suggested Citation

  • Andrew Clark & Hélène Couprie & Catherine Sofer, 2002. "Household Negotiation and Labor Supply: Evidence from the BHPS," IDEP Working Papers 0201, Institut d'economie publique (IDEP), Marseille, France, revised 24 May 2002.
    • Handle: RePEc:iep:wpidep:0201
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    File URL: http://www.idep-fr.org/IMG/document/dt/dt0201.pdf
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    Citations

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    Cited by:

    1. Bárcena, Elena & Blázquez, Maite & Moro-Egido, Ana I., 2016. "The socioeconomic gradient in health: The role of intra-household resource allocation," Working Papers in Economic Theory 2016/06, Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History).
    2. Inmaculada Garcia & Jose Alberto Molina & Victor Manuel Montuenga, 2010. "Intra-family distribution of paid-work time," Applied Economics, Taylor & Francis Journals, vol. 42(5), pages 589-601.
    3. Tipper, Adam, 2010. "Economic models of the family and the relationship between economic status and health," Social Science & Medicine, Elsevier, vol. 70(10), pages 1567-1573, May.
    4. Elena Bárcena-Martín & Maite Blázquez & Ana I. Moro Egido, 2017. "Intra-household allocation of resources and decision-making. How important are in terms of individual well-being?," ThE Papers 17/03, Department of Economic Theory and Economic History of the University of Granada..
    5. Jeyle Ortiz Rodríguez, 2012. "Modelación de decisiones laborales de los padres y las madres de Nuevo León: aplicación de los modelos de negociación," Ensayos Revista de Economia, Universidad Autonoma de Nuevo Leon, Facultad de Economia, vol. 0(1), pages 35-74, May.

    More about this item

    Keywords

    Labour Supply; Collective Model; Sharing Rule; Marriage Market.;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D10 - Microeconomics - - Household Behavior - - - General
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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