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Intertemporal Labor Supply and Intra-Household Commitment

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  • Chiappori, Pierre-André

    (Columbia University)

  • Molina, José Alberto

    (University of Zaragoza)

  • Gimenez-Nadal, José Ignacio

    (University of Zaragoza)

  • Velilla, Jorge

    (University of Zaragoza)

Abstract

This paper adopts an intertemporal labor supply perspective to propose a test that allows us to distinguish between intra-household non-commitment, limited commitment, and full commitment. It investigates whether, after controling for current and future (expected) wages, past wage shocks have a lasting and significant impact on present labor supply and public consumption. Using a semi-log parametrization of labor supply and data from the Panel Study of Income Dynamics for the US, the paper shows positive evidence in favor of the limited commitment model. Specifically, unexpected past wage shocks affect labor supply in exactly the way predicted by theory, as spouses' past wage deviations have a negative impact on their labor supply and a positive impact on their spouses'. In addition, wives' past wage shocks also impact negatively household public expenditure on housing.

Suggested Citation

  • Chiappori, Pierre-André & Molina, José Alberto & Gimenez-Nadal, José Ignacio & Velilla, Jorge, 2019. "Intertemporal Labor Supply and Intra-Household Commitment," IZA Discussion Papers 12353, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp12353
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    References listed on IDEAS

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    Cited by:

    1. Gutiérrez, Antonio, 2022. "La oferta laboral en Francia: una aplicación de los modelos colectivos familiares [Household labor supply in France: An empirical test of the collective model]," MPRA Paper 112173, University Library of Munich, Germany.
    2. Fau Naval, Lorenzo, 2022. "Poder de negociación intrafamiliar de las familias polacas [Intrahousehould bargaining power in polish families]," MPRA Paper 112540, University Library of Munich, Germany, revised 24 Mar 2022.
    3. García Rodríguez, Alejandro, 2022. "La oferta de trabajo en Bélgica: Distribución del trabajo remunerado entre los cónyuges de la familia [The job offer in Belgium: Distribution of paid work between the spouses of the family]," MPRA Paper 113262, University Library of Munich, Germany.
    4. Elena Rey & Andreas Kyriacou & José I. Silva, 2021. "Maternity leave and female labor force participation: evidence from 159 countries," Journal of Population Economics, Springer;European Society for Population Economics, vol. 34(3), pages 803-824, July.
    5. Belloc, Ignacio & Molina, José Alberto & Velilla, Jorge, 2022. "How does intrahousehold bargaining power impact labor supply? European cross-country evidence (2004-2019)," GLO Discussion Paper Series 1132, Global Labor Organization (GLO).
    6. Pérez Mínguez, José Antonio, 2022. "Oferta laboral en Gran Bretaña: Un enfoque colectivo [Job supply in Great Britain: A collective approach]," MPRA Paper 112743, University Library of Munich, Germany.
    7. Bautista Lacambra, Sergio, 2020. "Household labor supply: Collective results for certain developed countries," MPRA Paper 101514, University Library of Munich, Germany.
    8. España Ara, Adrián, 2022. "Oferta laboral en España: Una estimación con EU-SILC (2006-2019) [Labor supply in Spain: An estimation with EU-SILC (2006-2019)]," MPRA Paper 113018, University Library of Munich, Germany.
    9. 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.

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    More about this item

    Keywords

    collective model; intertemporal labor supply; intra-household commitment; PSID;
    All these keywords.

    JEL classification:

    • D15 - Microeconomics - - Household Behavior - - - Intertemporal Household Choice; Life Cycle Models and Saving
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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