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Endogeneous Household Interaction

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  • Daniela Del Boca

    ()

  • Christopher Flinn

Abstract

There is a long history of the theoretical and empirical investigation of the labor supply decisions of married women. Perhaps the starting point for modern econometric analysis of this question is Heckman (1974), in which a neoclassical model of wives’ labor supply was estimated using disaggregated data. He explicitly estimated the parameters characterizing a household utility function, which included as arguments the leisure levels of wives and household consumption. With the addition of a wage function, Heckman was able to consistently estimate household preference parameters and the wage function in a manner that eliminated the types of endogenous sampling problems known to create estimator bias when the participation decision is ignored....

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Bibliographic Info

Paper provided by CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY in its series CHILD Working Papers with number wp08_09.

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Length: 52 pages
Date of creation: Feb 2009
Date of revision:
Handle: RePEc:wpc:wplist:wp08_09

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Keywords: Household Time Allocation; Grim Trigger Strategy; Household Production; Method of Simulated Moments;

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References

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  7. Flinn, Christopher J, 2000. "Modes of Interaction between Divorced Parents," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 41(3), pages 545-78, August.
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