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Estimation And Testing Of Household Labour Supply Models: Evidence From Spain

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  • Laura Crespo

    ()
    (Universidad de Alicante)

Abstract

This paper provides an empirical contribution to the current debate about the suitability of the collective model proposed by Chiappori (1988, 1992) for analysing intrahousehold behaviour in the labour supply context. We follow Chiappori et al.(2002) and we extend the model considering differences in the education level between the two members of the couple as a potential distribution factor. Moreover, we propose a particular parametric specification for the labour supply system in order to derive the restrictions imposed by the collective setting on observed household behaviour. The empirical results show that neither the unitary model nor the collective one fits the Spanish household labour supply data.

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File URL: http://www.ivie.es/downloads/docs/wpasad/wpasad-2005-03.pdf
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Bibliographic Info

Paper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie AD with number 2005-03.

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Length: 37 pages
Date of creation: Jan 2005
Date of revision:
Publication status: Published by Ivie
Handle: RePEc:ivi:wpasad:2005-03

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Keywords: Households behaviour; labour supply; collective model; unitary model;

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References

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  1. Yuk-fai Fong & Junsen Zhang, 2001. "The Identification of Unobservable Independent and Spousal Leisure," Journal of Political Economy, University of Chicago Press, vol. 109(1), pages 191-202, February.
  2. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-38, May.
  3. 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.
  4. M. Browning & P. A. Chiappori, 1998. "Efficient Intra-Household Allocations: A General Characterization and Empirical Tests," Econometrica, Econometric Society, vol. 66(6), pages 1241-1278, November.
  5. Hélène Couprie, 2007. "Time allocation within the Family: Welfare implications of life in a couple," Economic Journal, Royal Economic Society, vol. 117(516), pages 287-305, 01.
  6. Bourguignon, F. & Chiappori, P-A., 1991. "Collective Models of Household Behaviour: An Introduction," DELTA Working Papers 91-29, DELTA (Ecole normale supérieure).
  7. Altonji, Joseph G & Hayashi, Fumio & Kotlikoff, Laurence J, 1992. "Is the Extended Family Altruistically Linked? Direct Tests Using Micro Data," American Economic Review, American Economic Association, vol. 82(5), pages 1177-98, December.
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  9. Donni, Olivier, 2005. "Collective Female Labour Supply: Theory and Application," IZA Discussion Papers 1506, Institute for the Study of Labor (IZA).
  10. Apps, P.F. & Rees, R., 1993. "Labour Supply, Household Production and Intra-Family Welfare Distribution," Working Papers 1993-3, University of Guelph, Department of Economics and Finance.
  11. Meghir, Costas & Phillips, David, 2008. "Labour Supply and Taxes," IZA Discussion Papers 3405, Institute for the Study of Labor (IZA).
  12. Bernarda Zamora, 2002. "The Spanish Sharing Rule," Working Papers. Serie AD 2002-24, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  13. Chiappori, Pierre-Andre, 1988. "Rational Household Labor Supply," Econometrica, Econometric Society, vol. 56(1), pages 63-90, January.
  14. Martin Browning, 1994. "The Saving Behaviour of a Two Person Household," Discussion Papers 96-09, University of Copenhagen. Department of Economics, revised Jan 1996.
  15. Pierre-Andre Chiappori & Bernard Fortin & Guy Lacroix, 2002. "Marriage Market, Divorce Legislation, and Household Labor Supply," Journal of Political Economy, University of Chicago Press, vol. 110(1), pages 37-72, February.
  16. Martin Browning & Pierre-André Chiappori & Arthur Lewbel, . "Estimating Consumption Economies of Scale, Adult Equivalence Scales, and Household Bargaining Power," CAM Working Papers 2003-12, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics, revised Dec 2003.
  17. Chiappori, P.A., 1989. "Collective Labour Supply and Welfare," DELTA Working Papers 89-07, DELTA (Ecole normale supérieure).
  18. 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.
  19. Maurizio Mazzocco, 2007. "Household Intertemporal Behaviour: A Collective Characterization and a Test of Commitment," Review of Economic Studies, Oxford University Press, vol. 74(3), pages 857-895.
  20. Blundell, Richard & Ham, John & Meghir, Costas, 1987. "Unemployment and Female Labour Supply," Economic Journal, Royal Economic Society, vol. 97(388a), pages 44-64, Supplemen.
  21. 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.
  22. Phillips, Peter C B & Park, Joon Y, 1988. "On the Formulation of Wald Tests of Nonlinear Restrictions," Econometrica, Econometric Society, vol. 56(5), pages 1065-83, September.
  23. repec:bla:restud:v:74:y:2007:i:3:p:857-895 is not listed on IDEAS
  24. Iván Fernández Val, 2003. "Household labor supply: evidence for Spain," Investigaciones Economicas, Fundación SEPI, vol. 27(2), pages 239-275, May.
  25. Richard Blundell & Pierre-Andr� Chiappori & Costas Meghir, 2005. "Collective Labor Supply with Children," Journal of Political Economy, University of Chicago Press, vol. 113(6), pages 1277-1306, December.
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  27. Chiappori, P.A., 1994. "Introducing Household Production in Collective Models of Labour Suply," DELTA Working Papers 94-18, DELTA (Ecole normale supérieure).
  28. Bernarda Zamora, 2003. "Female Labor Participation and the Allocation of Household Expenditure. Evidence on Spanish Data," Microeconomics 0302004, EconWPA.
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Citations

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Cited by:
  1. Bargain, Olivier & Peichl, Andreas, 2013. "Steady-state labor supply elasticities: A survey," ZEW Discussion Papers 13-084, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  2. Olivier Bargain & Kristian Orsini & Andreas Peichl, 2011. "Labor Supply Elasticities in Europe and the US," Working Papers 201114, School Of Economics, University College Dublin.
  3. Olivier Bargain & Andreas Peichl, 2013. "Steady-State Labor Supply Elasticities: An International Comparison," Working Papers halshs-00805744, HAL.
  4. Bargain, Olivier & Orsini, Kristian & Peichl, Andreas, 2012. "Comparing Labor Supply Elasticities in Europe and the US: New Results," IZA Discussion Papers 6735, Institute for the Study of Labor (IZA).
  5. repec:ese:emodwp:em1-11 is not listed on IDEAS

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