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A Public Good Version of the Collective Household Model: An Empirical Approach with an Application to British Household Data

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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 we consider an empirical collective household model of time allocation for two-earner households. The novelty of this paper is that we estimate a version of the collective household model, where the internally produced goods and the externally purchased goods are assumed to be public. The empirical results suggest that: (1) Preferences of men and women differ; (2) Although there are significant individual variations, on average the utility functions of men and women are equally weighted in the household utility function; (3) Differences in the ratio of the partners' hourly wages are explanatory for how individual utilities are weighted in the household utility function. (4) The female's preference for household production is influenced by family size, but this does not hold for the male; (5) Both the male and the female have a backward-bending labor supply curve; (6) Labor-supply curves are forward-bending with respect to the partner's wage rate; (7) Our model rejects the unitary Slutsky symmetry condition.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3274.

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Length: 37 pages
Date of creation: Jan 2008
Date of revision:
Publication status: published in: Review of Economics of the Household, 2008, 6 (2), 169-191
Handle: RePEc:iza:izadps:dp3274

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Keywords: labor supply; collective household models; household behavior;

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References

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Citations

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Cited by:
  1. Marcassa Stefania, 2013. "Divorce laws and divorce rate in the US," The B.E. Journal of Macroeconomics, De Gruyter, vol. 13(1), pages 39, August.
  2. Nabanita Datta Gupta & Leslie S Stratton, 2008. "Institutions, Social Norms, and Bargaining Power: An Analysis of Individual Leisure Time in Couple Households," Working Papers 0806, VCU School of Business, Department of Economics.
  3. Vivien Procher & Nolan Ritter & Colin Vance, 2014. "Making Dough or Baking Dough? Spousal Housework Responsibilities in Germany, 1992-2011," Ruhr Economic Papers 0472, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  4. 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.
  5. Wencke Gwozdz & Alfonso Sousa-Poza, 2010. "Explaining Gender Differences in Housework Time in Germany," Journal of Consumer Policy, Springer, vol. 33(2), pages 183-200, June.
  6. Li, Jinjing & O'Donoghue, Cathal, 2011. "Retirement Choice Simulation in Household Settings with Heterogeneous Pension Plans," IZA Discussion Papers 5866, Institute for the Study of Labor (IZA).
  7. Nabanita Datta Gupta & Leslie Stratton, 2010. "Examining the impact of alternative power measures on individual time use in American and Danish couple households," Review of Economics of the Household, Springer, vol. 8(3), pages 325-343, September.
  8. Bredemeier, Christian & Juessen, Falko, 2012. "Minimum Wages and Female Labor Supply in Germany," IZA Discussion Papers 6892, Institute for the Study of Labor (IZA).

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