And the winner is... An empirical evaluation of two competing approaches to household labour supply
Abstract
In this paper, an empirical evaluation is presented of two competing flexible labour supply models. The first is a standard unitary model, while the second is based on the collective approach to household behaviour. The evaluation focuses on the testing of the models' theoretical implications, on their ability to identify structural information, like preferences and on their empirical performance. Models are estimated on Belgian microdata from 1992 and 1997. The unitary model cannot be rejected for single person households, while it is rejected for a sample of two person households. The alternative collective model cannot be rejected for the same sample. However, since the crucial assumption of egoistic or Beckerian caring individual preferences is rejected, the comparative advantage of the collective model as basis for intrahousehold welfare evaluations cannot be fully exploited. Finally, the collective model has the best empirical fit.Download Info
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Paper provided by Katholieke Universiteit Leuven, Centrum voor Economische Studiën, Working Group Public Economics in its series Public Economics Working Paper Series with number ces0123.Length: 36 pp.
Date of creation: 2001
Date of revision:
Handle: RePEc:wpe:papers:ces0123
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Keywords: collective household models; household bargaining; intrahousehold allocation; labour supply;Find related papers by JEL classification:
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Pierre-André Chiappori & Olivier Donni, 2004.
"Les modèles non-unitaires de comportement du ménage: un survol de la littérature,"
Cahiers de recherche
0426, CIRPEE.
- Chiappori, Pierre-André & Donni, Olivier, 2006. "Les modèles non unitaires de comportement du ménage : un survol de la littérature," L'Actualité Economique, Société Canadienne de Science Economique, vol. 82(1), pages 9-52, mars-juin.
- Olivier Donni & Nicolas Moreau, 2005.
"Collective Labor Supply: a Single-Equation Model and Some Evidence from French Data,"
Cahiers de recherche
0516, CIRPEE.
- Olivier Donni & Nicolas Moreau, 2007. "Collective Labor Supply: A Single-Equation Model and Some Evidence from French Data," Journal of Human Resources, University of Wisconsin Press, vol. 42(1).
- Maria Concetta Chiuri & Ernesto Longobardi, 2002. "Welfare analysis of fiscal reforms in Europe: Does the representation of family decision processes matter? Evidence from Italy," series 0007, Dipartimento di Scienze Economiche e Metodi Matematici - Università di Bari, revised Jan 2002.
- Donni, Olivier, 2008.
"Labor supply, home production, and welfare comparisons,"
Journal of Public Economics,
Elsevier, vol. 92(7), pages 1720-1737, July.
- Olivier Donni, 2004. "Labor Supply, Home Production and Welfare Comparisons," Cahiers de recherche 0427, CIRPEE.
- Donni, Olivier, 2005. "Labor Supply, Home Production and Welfare Comparisons," IZA Discussion Papers 1511, Institute for the Study of Labor (IZA).
- Chiappori, Pierre-André & Donni, Olivier, 2009. "Non-unitary Models of Household Behavior: A Survey of the Literature," IZA Discussion Papers 4603, Institute for the Study of Labor (IZA).
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