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Intrahousehold Commitment and Intertemporal Labor Supply

Author

Listed:
  • Pierre André Chiappori
  • José Ignacio Gimenez Nadal
  • José Alberto Molina
  • Alexandros Theloudis
  • Jorge Velilla

Abstract

This paper studies household labor supply, within the context of an intertemporal collective model, and three prominent intrahousehold commitment regimes: full commitment, no commitment, and limited commitment. We propose a test that distinguishes among all three alternatives based on how contemporary and historical changes to the economic environment affect household behavior. We implement the test on recent data from the Panel Study of Income Dynamics in the US (1999-2017). Although couples and singles behave similarly in many aspects, couples' labor supply exhibits distinctive features that are consistent with limited commitment. We then use our results to highlight several issues and caveats that arise when testing for commitment.

Suggested Citation

  • Pierre André Chiappori & José Ignacio Gimenez Nadal & José Alberto Molina & Alexandros Theloudis & Jorge Velilla, 2020. "Intrahousehold Commitment and Intertemporal Labor Supply," LISER Working Paper Series 2020-11, Luxembourg Institute of Socio-Economic Research (LISER).
    • Handle: RePEc:irs:cepswp:2020-11
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    Cited by:

    1. Zhongwu Li, 2023. "Family Decision Making Power and Women’s Marital Satisfaction," Journal of Family and Economic Issues, Springer, vol. 44(3), pages 568-583, September.
    2. Alexandros Theloudis & Jorge Velilla & Pierre-André Chiappori & José Ignacio Giménez-Nadal & José Alberto Molina, 2025. "Commitment and the Dynamics of Household Labour Supply," The Economic Journal, Royal Economic Society, vol. 135(665), pages 354-386.
    3. Bredemeier, Christian & Gravert, Jan & Juessen, Falko, 2021. "Accounting for Limited Commitment between Spouses When Estimating Labor-Supply Elasticities," IZA Discussion Papers 14226, IZA Network @ LISER.
    4. Ibarra, Helena & Velilla, Jorge, 2021. "Oferta laboral familiar y negociación intrafamiliar en España: Un test del modelo colectivo [Household labor supply and intrahousehold bargaining: An empirical test of the collective model]," MPRA Paper 108080, University Library of Munich, Germany.
    5. Juan Carlos Campaña & José Ignacio Giménez-Nadal & José Alberto Molina & Jorge Velilla, 2024. "The shifters of intrahousehold decision-making in European countries," Empirical Economics, Springer, vol. 66(3), pages 1055-1101, March.
    6. Bautista-Lacambra, Sergio, 2020. "El ciclo vital en la familia:una estructura conceptual dinámica [A family's life-cycle: A conceptual dynamic structure]," MPRA Paper 102514, University Library of Munich, Germany.

    More about this item

    Keywords

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    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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