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Married with Children: A Collective Labor Supply Model with Detailed Time Use and Intrahousehold Expenditure Information

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  • Laurens Cherchye
  • Bram De Rock
  • Frederic Vermeulen

Abstract

We propose a collective labor supply model with household production that generalizes an original model of Blundell, Chiappori and Meghir (2005). In our model, adults’ individual preferences do not only depend on own leisure and individual private consumption of market goods. They also depend on the consumption of domestic goods, which are produced by combining goods bought at the market with individuals’ time. We apply our model to new and unique data on Dutch couples with children. The data contains detailed information about the spouses’ time use and the intrahousehold allocation of all expenditures. Our application uses a novel estimation strategy that builds upon the familiar two-stage allocation representation of the collective model. We obtain interesting (and plausible) empirical results. Spouses’ preferences depend on the consumption of domestically produced goods (including children’s welfare). Next, Pareto weights depend on variables like the individual wages and the share in the household’s nonlabor income. Finally, and perhaps surprisingly, we do not find evidence that mothers care more for their children than fathers.

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Bibliographic Info

Paper provided by ULB -- Universite Libre de Bruxelles in its series ULB Institutional Repository with number 2013/131705.

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Date of creation: 2012
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Publication status: Published in: The American economic review (2012) v.102,p.3377-3405
Handle: RePEc:ulb:ulbeco:2013/131705

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References

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  1. Browning, Martin & Francois Bourguignon & Pierre-Andre Chiappori & Valerie Lechene, 1994. "Income and Outcomes: A Structural Model of Intrahousehold Allocation," Journal of Political Economy, University of Chicago Press, vol. 102(6), pages 1067-96, December.
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Citations

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Cited by:
  1. Martina Menon & Elisa Pagani & Federico Perali, 2012. "A Characterization of Collective Individual Expenditure Functions," Working Papers 20/2012, University of Verona, Department of Economics.
  2. Laurens CHERCHYE & Bram DE ROCK & Jeroen SABBE & Ewout VERRIEST, 2010. "Commitment in intertemporal household consumption: a revealed preference analysis," Center for Economic Studies - Discussion papers ces10.33, Katholieke Universiteit Leuven, Centrum voor Economische Studiën.
  3. Cherchye, L.J.H. & Rock, B. de & Lewbel, A. & Vermeulen, F.M.P., 2012. "Sharing Rule Identification for General Collective Consumption Models," Discussion Paper 2012-041, Tilburg University, Center for Economic Research.
  4. Jaime Andrés Sarmiento Espinel, 2012. "Parental investment in their children’s education," Serie documentos de trabajo del Centro de Estudios Económicos 2012-09, El Colegio de México, Centro de Estudios Económicos.
  5. Vellore Arthi & James Fenske, 2013. "Labour and Health in Colonial Nigeria," Oxford University Economic and Social History Series _114, Economics Group, Nuffield College, University of Oxford.
  6. Wiktor Adamowicz & Mark Dickie & Shelby Gerking & Marcella Veronesi & David Zinner, 2013. "Household Decision-Making and Valuation of Environmental Health Risks to Parents and their Children," NCEE Working Paper Series 201306, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised Dec 2013.
  7. Catherine Haeck & Pierre Lefebvre & Xiaozhou Zhou, 2014. "The Power of the Purse: New Evidence on the Distribution of Income and Expenditures within the Family from a Canadian Experiment," Cahiers de recherche 1415, CIRPEE.
  8. Angelov, Nikolay & Johansson, Per & Lindahl, Erica, 2013. "Is the Persistent Gender Gap in Income and Wages Due to Unequal Family Responsibilities?," IZA Discussion Papers 7181, Institute for the Study of Labor (IZA).
  9. James Fenske & Vellore Arthi, 2013. "Labour and Health in Colonial Nigeria," Economics Series Working Papers Number 114, University of Oxford, Department of Economics.
  10. Majlesi, Kaveh, 2014. "Labor Market Opportunities and Women's Decision Making Power within Households," Working Papers 2014:4, Lund University, Department of Economics.
  11. 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.

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