Collective Female Labor Supply: Theory
In the present paper, we develop a new approach to deal with female labor supply in the so-called collective framework. It is often empirically observed that the husband's labor supply is fixed at full-time or determined by demand-side constraints. From this observation, we elaborate a model where only the wife's labor supply is flexible, the husband's labor supply being ex-ogenously fixed. We show, in this setting, that structural elements such as the resource distribution within the household can be identified provided that the consumption of at least one commodity is jointly observed, and that, in this case, testable constraints are generated. Then, this model is extended in several directions. To begin with, we discuss the decision to participate to the labor market and we consider the role of distribution factors. Then we introduce income taxation and fixed costs of participation. Finally, we develop a dual theory (with conditional labor supplies) which is often more tractable in empirical applications.
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