Advanced Search
MyIDEAS: Login

A Collective Labor Supply Model: Identification and Estimation in the Presence of Externalities by Means of Panel Data

Contents:

Author Info

  • Pierre-Carl Michaud
  • Frederic Vermeulen

Abstract

The authors study labor supply of elderly couples by means of a collective model. The model allows individuals to enjoy leisure more (or less) in company of their spouse (complementarity/ externalities in leisure). Preferences and the intra-household bargaining process are identified by using panel data through the dissolution of the household due to the death of one of the partners. The model does not only look at the extensive margin (working versus being retired), but also at the intensive margin (how many hours are worked). They apply the model to American households coming from the first six waves of the Health and Retirement Study. They compare model simulations with those from a standard unitary model for a set of policy reforms; such as the widely discussed proposals to eliminate the earnings test and the replacement of the spouse benefit with a past earnings sharing mechanism.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.rand.org/content/dam/rand/pubs/working_papers/2006/RAND_WR406.pdf
Download Restriction: no

Bibliographic Info

Paper provided by RAND Corporation Publications Department in its series Working Papers with number 406.

as in new window
Length: 34 pages
Date of creation: Jul 2006
Date of revision:
Handle: RePEc:ran:wpaper:406

Contact details of provider:
Postal: 1776 Main Street, P.O. Box 2138, Santa Monica, California 90407-2138
Phone: 310-393-0411
Fax: 310-393-4818
Email:
Web page: http://www.rand.org/pubs/
More information through EDIRC

Related research

Keywords: collective model; intra-household allocation; labor supply; retirement; social security; identification;

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Blundell, Richard & Chiappori, Pierre-André & Magnac, Thierry & Meghir, Costas, 2005. "Collective Labour Supply: Heterogeneity and Nonparticipation," IZA Discussion Papers 1785, Institute for the Study of Labor (IZA).
  2. Michaud, P.C. & Soest, A.H.O. van, 2004. "Health and Wealth of Elderly Couples: Causality Tests Using Dynamic Panel Data Models," Discussion Paper 2004-81, Tilburg University, Center for Economic Research.
  3. Michael D. Hurd & James P. Smith & Julie M. Zissimopoulos, 2002. "The Effects of Subjective Survival on Retirement and Social Security Claiming," Working Papers wp021, University of Michigan, Michigan Retirement Research Center.
  4. 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.
  5. Chiappori, Pierre-André & Fortin, Bernard & Lacroix, Guy, 2001. "Marriage Market, Divorce Legislation and Household Labor Supply," Cahiers de recherche 0103, Université Laval - Département d'économique.
  6. Booth, Alison L. & van Ours, Jan C., 2005. "Hours of Work and Gender Identity: Does Part-Time Work Make the Family Happier?," IZA Discussion Papers 1884, Institute for the Study of Labor (IZA).
  7. Vermeulen, F.M.P., 2006. "A collective model for female labour supply with nonparticipation and taxation," Open Access publications from Tilburg University urn:nbn:nl:ui:12-194158, Tilburg University.
  8. Leora Friedberg, 1999. "The Labor Supply Effects of the Social Security Earnings Test," NBER Working Papers 7200, National Bureau of Economic Research, Inc.
  9. Frederic Vermeulen, 2005. "And the winner is... An empirical evaluation of unitary and collective labour supply models," Empirical Economics, Springer, vol. 30(3), pages 711-734, October.
  10. Bargain, O. & Beblo, M. & Beninger, D. & Blundell, R. & Carrasco, R. & Chiuri, M-C. & Laisney, F. & Lechene, V. & Moreau, N. & Myck, M. & Ruiz-castillo, J. & Vermeulen, F.M.P., 2006. "Does the representation of household behavior matter for welfare analysis of tax-benefit policies? An introduction," Open Access publications from Tilburg University urn:nbn:nl:ui:12-194159, Tilburg University.
  11. Jonathan Gruber & Peter Orszag, 2000. "Does the Social Security Earnings Test Affect Labor Supply and Benefits Receipt?," NBER Working Papers 7923, National Bureau of Economic Research, Inc.
  12. Vermeulen, F.M.P. & Bargain, O. & Beblo, M. & Beninger, D. & Blundell, R. & Carrasco, R. & Chiuri, M-C. & Laisney, F. & Lechene, V. & Moreau, N. & Myck, M. & Ruiz-castillo, J., 2006. "Collective models of labor supply with nonconvex budget sets and nonparticipation: A calibration approach," Open Access publications from Tilburg University urn:nbn:nl:ui:12-194160, Tilburg University.
  13. Steven Haider & Gary Solon, 2000. "Non Random Selection in the HRS Social Security Earnings Sample," Working Papers 00-01, RAND Corporation Publications Department.
  14. Kwang-Yeol Yoo & Alain de Serres, 2004. "Tax Treatment of Private Pension Savings in OECD Countries and the Net Tax Cost Per Unit of Contribution to Tax-Favoured Schemes," OECD Economics Department Working Papers 406, OECD Publishing.
  15. 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.
  16. Arthur van Soest, 1995. "Structural Models of Family Labor Supply: A Discrete Choice Approach," Journal of Human Resources, University of Wisconsin Press, vol. 30(1), pages 63-88.
  17. Cordelia Reimers & Marjorie Honig, 1996. "Responses to Social Security by Men and Women: Myopic and Far-Sighted Behavior," Journal of Human Resources, University of Wisconsin Press, vol. 31(2), pages 359-382.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Ekaterina Kalugina & Catherine Sofer & Natalia Radtchenko, 2009. "Intra-household inequality in transitional Russia," Review of Economics of the Household, Springer, vol. 7(4), pages 447-471, December.
  2. Lacroix, Guy & Radtchenko, Natalia, 2008. "The Changing Intra-Household Resource Allocation in Russia," IZA Discussion Papers 3733, Institute for the Study of Labor (IZA).

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:ran:wpaper:406. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Benson Wong).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.