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Empirical Estimation Results of a Collective Household Time Allocation Model

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Author Info
Chris van Klaveren () (SCHOLAR, University of Amsterdam)
Bernard van Praag () (SCHOLAR, University of Amsterdam and IZA Bonn)
Henriette Maassen van den Brink () (SCHOLAR, University of Amsterdam)

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

Other versions of this item:

Find related papers by JEL classification:
D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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References listed on IDEAS
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    Other versions:
  3. Hallberg, Daniel, 2003. "Synchronous leisure, jointness and household labor supply," Labour Economics, Elsevier, vol. 10(2), pages 185-203, April. [Downloadable!] (restricted)
    Other versions:
  4. 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.
    Other versions:
  5. Stephen P. Jenkins & Lars Osberg, 2003. "Nobody to Play with?: The Implications of Leisure Coordination," Discussion Papers of DIW Berlin 368, DIW Berlin, German Institute for Economic Research. [Downloadable!]
    Other versions:
  6. Daniel S. Hamermesh, 2000. "Togetherness: Spouses' Synchronous Leisure, and the Impact of Children," NBER Working Papers 7455, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  7. Vermeulen, Frederic, 2002. " Collective Household Models: Principles and Main Results," Journal of Economic Surveys, Blackwell Publishing, vol. 16(4), pages 533-64, September. [Downloadable!] (restricted)
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  8. Martin Browning & Metter Gortz, 2006. "Spending time and money within the household," Economics Series Working Papers 288, University of Oxford, Department of Economics. [Downloadable!]
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  11. Zhiqi Chen & Frances Woolley, 1999. "A Cournot-Nash Model of Family Decision Making," Carleton Economic Papers 99-13, Carleton University, Department of Economics. [Downloadable!]
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  13. Jennifer Ward-Batts, 2003. "Out of the Wallet and into the Purse: Using Micro Data to Test Income Pooling," Claremont Colleges Working Papers 2003-10, Claremont Colleges. [Downloadable!]
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  14. Thomas, D., 1989. "Intra-Household Resource Allocation: An Inferential Approach," Papers 586, Yale - Economic Growth Center.
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  16. Martin Browning, 1994. "The Saving Behaviour of a Two Person Household," Department of Economics Working Papers 1994-01, McMaster University. [Downloadable!]
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  17. 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.
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  18. Chiappori, Pierre-Andre, 1988. "Rational Household Labor Supply," Econometrica, Econometric Society, vol. 56(1), pages 63-90, January. [Downloadable!] (restricted)
  19. 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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  20. Browning, Martin, 1992. "Children and Household Economic Behavior," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1434-75, September. [Downloadable!] (restricted)
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