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Collective labor supply with children and non-participation: Evidence from Mexico

Author

Listed:
  • Jaime Sarmiento Espinel

    (Universidad Militar Nueva Granada)

  • Edwin Van Gameren

    (El Colegio de México)

Abstract

We extend the collective model of household behavior to consider both public consumption (expenditures on children), as well as non-participation in the labor market. Identification of individual preferences and the sharing rule derived by observing each individual’s labor supply and the total expenditure on the public good rest on the existence of a distribution factor and on the existence and uniqueness of individual reservation wages at which both members are indifferent as to whether a member participates or not. Using a sample of Mexican nuclear families, collective rationality is not rejected. No evidence is found that empowering mothers is more beneficial for children than empowering fathers.

Suggested Citation

  • Jaime Sarmiento Espinel & Edwin Van Gameren, 2018. "Collective labor supply with children and non-participation: Evidence from Mexico," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 33(1), pages 65-115.
    • Handle: RePEc:emx:esteco:v:33:y:2018:i:1:p:65-115
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    File URL: https://estudioseconomicos.colmex.mx/index.php/economicos/article/view/354/357
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    More about this item

    Keywords

    collective intrahousehold decision-making models; labor supply; non-participation; public goods; sharing rule;
    All these keywords.

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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