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A Public Good Version of the Collective Household Model: An Empirical Approach with an Application to British Household Data

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  • Chris van Klaveren
  • Bernard M.S. van Praag
  • Henriette Maassen van den Brink

Abstract

In this paper we consider an empirical collective household model of time allocation for two-earner households. The novelty of this paper is that we estimate a version of the collective household model, where the internally produced goods and the externally purchased goods are assumed to be public. The empirical results suggest that: (1) Preferences of men and women differ; (2) Although there are significant individual variations, on average the utility functions of men and women are equally weighted in the household utility function; (3) Differences in the ratio of the partners' hourly wages are explanatory for how individual utilities are weighted in the household utility function. (4) The female's preference for household production is influenced by family size, but this does not hold for the male; (5) Both the male and the female have a backward-bending labor supply curve; (6) Labor-supply curves are forward-bending with respect to the partner's wage rate; (7) Our model rejects the unitary Slutsky symmetry condition.

Suggested Citation

  • Chris van Klaveren & Bernard M.S. van Praag & Henriette Maassen van den Brink, 2008. "A Public Good Version of the Collective Household Model: An Empirical Approach with an Application to British Household Data," CESifo Working Paper Series 2190, CESifo Group Munich.
  • Handle: RePEc:ces:ceswps:_2190
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    Cited by:

    1. repec:zbw:rwirep:0472 is not listed on IDEAS
    2. Marcassa Stefania, 2013. "Divorce laws and divorce rate in the US," The B.E. Journal of Macroeconomics, De Gruyter, vol. 13(1), pages 1-39, August.
    3. Chris Van Klaveren & Bernard M.S. Van Praag & Henriette Maassen van den Brink, 2009. "Collective Labor Supply of Native Dutch and Immigrant Households in the Netherlands," CESifo Working Paper Series 2872, CESifo Group Munich.
    4. Procher, Vivien & Ritter, Nolan & Vance, Colin, 2014. "Making Dough or Baking Dough? Spousal Housework Responsibilities in Germany, 1992-2011," Ruhr Economic Papers 472, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    5. 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.
    6. Javier Alejo & Nicolás Badaracco, 2015. "Counterfactual Distributions in Bivariate Models—A Conditional Quantile Approach," Econometrics, MDPI, Open Access Journal, vol. 3(4), pages 1-14, November.
    7. Vivien Procher & Nolan Ritter & Colin Vance, 2014. "Making Dough or Baking Dough? Spousal Housework Responsibilities in Germany, 1992-2011," Ruhr Economic Papers 0472, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    8. Christian Bredemeier & Falko Juessen, 2013. "Assortative Mating and Female Labor Supply," Journal of Labor Economics, University of Chicago Press, vol. 31(3), pages 603-631.
    9. Li, Jinjing & O'Donoghue, Cathal, 2011. "Retirement Choice Simulation in Household Settings with Heterogeneous Pension Plans," IZA Discussion Papers 5866, Institute for the Study of Labor (IZA).
    10. Wencke Gwozdz & Alfonso Sousa-Poza, 2010. "Explaining Gender Differences in Housework Time in Germany," Journal of Consumer Policy, Springer, vol. 33(2), pages 183-200, June.
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    More about this item

    Keywords

    collective household models; household behavior; labor supply; intra-household; time allocation;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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