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Empirical Estimation Results of a Collective Household Time Allocation Model

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Author Info

  • van Klaveren, Chris

    ()
    (Maastricht University)

  • van Praag, Bernard M. S.

    ()
    (University of Amsterdam)

  • Maassen van den Brink, Henriette

    ()
    (University of Amsterdam)

Abstract

In this paper an empirical model is developed where the collective household model is used as a basic framework to describe the time allocation problem. The collective model views household behavior as the outcome of maximizing a household utility function which is a weighted sum of the utility functions of the male and the female. The empirical research that has been done is mainly focused on testing and refuting the unitary model. Moreover, in the bulk of time allocation literature the main accent still lies on the development of theory. The novelty of this paper is that we empirically estimate the two individual utility functions and the household power weight distribution, which is parameterized per household. The model is estimated on a sub-sample of the British Household Panel Survey, consisting of two-earner households. The empirical results suggest that: (1) Given that the weight distribution is wage dependent, preferences of males and females differ, which rejects the unitary model; (2) The power differences are mainly explained by differences in the ratio of the partners' hourly wages; (3) Although there are significant individual variations on average the power distribution in two-earner families is about even; (4) The male tends to be marginally more productive in performing household tasks than the female (5) The preference for total household production is influenced by family size for the female but not for the male (6) Both males and females have a backward bending labor supply curve.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2107.

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Length: 40 pages
Date of creation: Apr 2006
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Handle: RePEc:iza:izadps:dp2107

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Keywords: intra-household; labor supply; collective household models; time allocation;

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References

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  1. Daniel Hallberg & Anders Klevmarken, 2003. "Time for children: A study of parent's time allocation," Journal of Population Economics, Springer, vol. 16(2), pages 205-226, 05.
  2. Frederic Vermeulen, 2000. "Collective household models: principles and main results," Public Economics Working Paper Series ces0028, Katholieke Universiteit Leuven, Centrum voor Economische Studiën, Working Group Public Economics.
  3. Daniel S. Hamermesh, 2000. "Togetherness: Spouses' Synchronous Leisure, and the Impact of Children," NBER Working Papers 7455, National Bureau of Economic Research, Inc.
  4. Browning, M. & Chiappori, P.A., 1994. "Efficient Intra-Household allocations: A General Characterization and Empirical Tests," DELTA Working Papers 94-16, DELTA (Ecole normale supérieure).
  5. Hamermesh, Daniel S, 1999. "The Timing of Work over Time," Economic Journal, Royal Economic Society, vol. 109(452), pages 37-66, January.
  6. Chiappori, Pierre-Andre, 1988. "Rational Household Labor Supply," Econometrica, Econometric Society, vol. 56(1), pages 63-90, January.
  7. Jenkins, Stephen P. & Osberg, Lars, 2003. "Nobody to Play With? The Implications of Leisure Coordination," IZA Discussion Papers 850, Institute for the Study of Labor (IZA).
  8. Valerie Lechene & Martin Browning, 2004. "Collective and unitary models: a clarification," Economics Series Working Papers 191, University of Oxford, Department of Economics.
  9. Chen, Zhiqi & Woolley, Frances, 2001. "A Cournot-Nash Model of Family Decision Making," Economic Journal, Royal Economic Society, vol. 111(474), pages 722-48, October.
  10. Hamermesh, Daniel S., 2000. "Timing, Togetherness and Time Windfalls," IZA Discussion Papers 173, Institute for the Study of Labor (IZA).
  11. Richard Blundell & Pierre-Andre Chiappori & Thierry Magnac & Costas Meghir, 2002. "Collective Labor Supply: Heterogeneity and Nonparticipation," Research Unit Working Papers 0210, Laboratoire d'Economie Appliquee, INRA.
  12. repec:ese:iserwp:2003-19 is not listed on IDEAS
  13. Peter Kooreman & Arie Kapteyn, 1990. "On the Empirical Implementation of Some Game Theoretic Models of Household Labor Supply," Journal of Human Resources, University of Wisconsin Press, vol. 25(4), pages 584-598.
  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. Jennifer Ward-Batts, 2008. "Out of the Wallet and into the Purse: Using Micro Data to Test Income Pooling," Journal of Human Resources, University of Wisconsin Press, vol. 43(2), pages 325-351.
  16. 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.
  17. Robert A. Pollak, 2005. "Bargaining Power in Marriage: Earnings, Wage Rates and Household Production," NBER Working Papers 11239, National Bureau of Economic Research, Inc.
  18. Thomas, D., 1989. "Intra-Household Resource Allocation: An Inferential Approach," Papers 586, Yale - Economic Growth Center.
  19. Browning, Martin, 1992. "Children and Household Economic Behavior," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1434-75, September.
  20. Hallberg, Daniel, 2002. "Synchronous Leisure, Jointness and Household Labor Supply," Working Paper Series 2002:11, Uppsala University, Department of Economics.
  21. Martin Browning & Mette Gørtz, 2012. "Spending Time and Money within the Household," Scandinavian Journal of Economics, Wiley Blackwell, vol. 114(3), pages 681-704, 09.
  22. 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.
  23. Lundberg, S.J. & Pollak, R.A. & Wales, T.J., 1994. "Do Husbands and Wives Pool Their Resources? Evidence from U.K. Child Benefit," Discussion Papers in Economics at the University of Washington 94-6, Department of Economics at the University of Washington.
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Cited by:
  1. 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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