Collective Household Labor Supply: Extensions
In the present paper, we adopt the usual assumptions of the collective approach, that is, individualism and efficiency, in order to study household labor supply. The theoretical innovation is twofold. First, we incorporate in the initial setting the participation decision to the labor market. Second, we abandon the assumption of linearity of the budget set. We show that, in these extensions, (i) structural elements such as preferences or the outcome of the decision process can be recorevered (ii) testable constraints are generated, from the observation of the household labor supplies.
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