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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 a model of Blundell, Chiappori, and Meghir (2005). Adults' preferences depend not only on own leisure and individual private consumption of market goods. They also depend on the consumption of domestic goods, which are produced by combining market goods with individuals' time. A new identification result, which uses production shifters, is developed. We apply our model to unique data on Dutch couples with children. Our application uses a novel estimation strategy that builds upon the familiar two-stage allocation representation of the collective model. (JEL D12, J12, J22)

Suggested Citation

  • Laurens Cherchye & Bram De Rock & Frederic Vermeulen, 2012. "Married with Children: A Collective Labor Supply Model with Detailed Time Use and Intrahousehold Expenditure Information," American Economic Review, American Economic Association, vol. 102(7), pages 3377-3405, December.
  • Handle: RePEc:aea:aecrev:v:102:y:2012:i:7:p:3377-3405
    Note: DOI: 10.1257/aer.102.7.3377
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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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    This item is featured on the following reading lists, Wikipedia, or ReplicationWiki pages:
    1. Married with Children: A Collective Labor Supply Model with Detailed Time Use and Intrahousehold Expenditure Information (AER 2012) in ReplicationWiki

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