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A collective household labor supply model with children and non-participation: Theory and empirical application

Listed author(s):
  • Jaime Andres Sarmiento Espinel

    ()

    (Universidad Militar Nueva Granada)

  • Edwin van Gameren

    ()

    (El Colegio de México)

We extend the collective model of household behavior to consider public consumption (expenditures on children), together with non-participation in the labor market. Identification of individual preferences and the sharing rule from observing each individual’s labor supply and the total expenditure on the public good rests on the existence of a distribution factor and the existence and uniqueness of individual reservation wages at which both members are indifferent 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.

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File URL: http://cee.colmex.mx/images/Documentos-de-trabajo-2016/DTCEEXI2016.pdf
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Paper provided by El Colegio de México, Centro de Estudios Económicos in its series Serie documentos de trabajo del Centro de Estudios Económicos with number 2016-11.

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Date of creation: Dec 2016
Handle: RePEc:emx:ceedoc:2016-11
Contact details of provider: Web page: http://www.colmex.mx/centros/cee/

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