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Collective labour supply : heterogeneity and nonparticipation

Author

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  • Richard Blundell

    (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Pierre-André Chiappori

    (University of Chicago)

  • Thierry Magnac

    (GREMAQ - Groupe de recherche en économie mathématique et quantitative - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique)

  • Costas Meghir

    (UCL - University College of London [London])

Abstract

We present identiÖcation and estimation results for the ìcollectiveî model of labour supply in which there are discrete choices, censoring of hours and nonparticipation in employment. We derive the collective restrictions on labour supply functions and contrast them with restrictions implied by the usual ìunitaryî framework. Using the large changes in the wage structure between men and women in the UK over the last two decades we estimate a collective labor supply model for married couples without children. The implications of the unitary framework are rejected while those of the collec- tive approach are not. The estimates of the sharing rule show that wages have a strong ináuence on bargaining power within couples.

Suggested Citation

  • Richard Blundell & Pierre-André Chiappori & Thierry Magnac & Costas Meghir, 2025. "Collective labour supply : heterogeneity and nonparticipation," Working Papers hal-05149893, HAL.
    • Handle: RePEc:hal:wpaper:hal-05149893
    Note: View the original document on HAL open archive server: https://hal.science/hal-05149893v1
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