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Empirical Estimation Results of a Collective Household Time Allocation Model

Listed author(s):
  • van Klaveren, Chris

    ()

    (Maastricht University)

  • van Praag, Bernard M. S.

    ()

    (University of Amsterdam)

  • Maassen van den Brink, Henriette

    ()

    (University of Amsterdam)

In this paper an empirical model is developed where the collective household model is used as a basic framework to describe the time allocation problem. The collective model views household behavior as the outcome of maximizing a household utility function which is a weighted sum of the utility functions of the male and the female. The empirical research that has been done is mainly focused on testing and refuting the unitary model. Moreover, in the bulk of time allocation literature the main accent still lies on the development of theory. The novelty of this paper is that we empirically estimate the two individual utility functions and the household power weight distribution, which is parameterized per household. The model is estimated on a sub-sample of the British Household Panel Survey, consisting of two-earner households. The empirical results suggest that: (1) Given that the weight distribution is wage dependent, preferences of males and females differ, which rejects the unitary model; (2) The power differences are mainly explained by differences in the ratio of the partners' hourly wages; (3) Although there are significant individual variations on average the power distribution in two-earner families is about even; (4) The male tends to be marginally more productive in performing household tasks than the female (5) The preference for total household production is influenced by family size for the female but not for the male (6) Both males and females have a backward bending labor supply curve.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2107.

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Length: 40 pages
Date of creation: Apr 2006
Handle: RePEc:iza:izadps:dp2107
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  1. Blundell, Richard & Chiappori, Pierre-André & Magnac, Thierry & Meghir, Costas, 2005. "Collective Labour Supply: Heterogeneity and Nonparticipation," IDEI Working Papers 373, Institut d'Économie Industrielle (IDEI), Toulouse.
  2. Stephen P. Jenkins & Lars Osberg, 2003. "Nobody to Play with?: The Implications of Leisure Coordination," Discussion Papers of DIW Berlin 368, DIW Berlin, German Institute for Economic Research.
  3. Chiappori, Pierre-Andre, 1997. "Introducing Household Production in Collective Models of Labor Supply," Journal of Political Economy, University of Chicago Press, vol. 105(1), pages 191-209, February.
  4. M. Browning & P. A. Chiappori, 1998. "Efficient Intra-Household Allocations: A General Characterization and Empirical Tests," Econometrica, Econometric Society, vol. 66(6), pages 1241-1278, November.
  5. Martin Browning & Pierre-André Chiappori & Valérie Lechene, 2006. "Collective and Unitary Models: A Clarification," Review of Economics of the Household, Springer, vol. 4(1), pages 5-14, 03.
  6. Chen, Zhiqi & Woolley, Frances, 2001. "A Cournot-Nash Model of Family Decision Making," Economic Journal, Royal Economic Society, vol. 111(474), pages 722-748, October.
  7. Martin Browning & Mette Gortz, 2006. "Spending time and money within the household," Economics Series Working Papers 288, University of Oxford, Department of Economics.
  8. Kooreman, P. & Kapteyn, A.J., 1989. "On the empirical implementation of some game theoretic models of household labor supply," Discussion Paper 1989-56, Tilburg University, Center for Economic Research.
  9. Daniel Hallberg & Anders Klevmarken, 2003. "Time for children: A study of parent's time allocation," Journal of Population Economics, Springer;European Society for Population Economics, vol. 16(2), pages 205-226, 05.
  10. Apps, Patricia F & Rees, Ray, 1997. "Collective Labor Supply and Household Production," Journal of Political Economy, University of Chicago Press, vol. 105(1), pages 178-190, February.
  11. Hamermesh, Daniel S., 2000. "Timing, Togetherness and Time Windfalls," IZA Discussion Papers 173, Institute for the Study of Labor (IZA).
  12. Thomas, D., 1989. "Intra-Household Resource Allocation: An Inferential Approach," Papers 586, Yale - Economic Growth Center.
  13. Chris Klaveren & Henriette Brink, 2007. "Intra-household work time synchronization," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 84(1), pages 39-52, October.
  14. Robert A. Pollak, 2005. "Bargaining Power in Marriage: Earnings, Wage Rates and Household Production," NBER Working Papers 11239, National Bureau of Economic Research, Inc.
  15. Hallberg, Daniel, 2002. "Synchronous Leisure, Jointness and Household Labor Supply," Working Paper Series 2002:11, Uppsala University, Department of Economics.
  16. Vermeulen, Frederic, 2002. " Collective Household Models: Principles and Main Results," Journal of Economic Surveys, Wiley Blackwell, vol. 16(4), pages 533-564, September.
  17. Jennifer Ward-Batts, 2003. "Out of the Wallet and into the Purse: Using Micro Data to Test Income Pooling," Claremont Colleges Working Papers 2003-10, Claremont Colleges.
  18. Chris van Klaveren & Henriëtte Maassen van den Brink, 2005. "Intra-household Work Time Synchronization: Togetherness or Material Benefits?," Tinbergen Institute Discussion Papers 05-095/3, Tinbergen Institute.
  19. Martin Browning, 1994. "The Saving Behaviour of a Two Person Household," Department of Economics Working Papers 1994-01, McMaster University.
  20. Lundberg, S.J. & Pollak, R.A. & Wales, T.J., 1994. "Do Husbands and Wives Pool Their Resources? Evidence from U.K. Child Benefit," Discussion Papers in Economics at the University of Washington 94-6, Department of Economics at the University of Washington.
  21. repec:uwp:jhriss:v:3:y:1968:i:3:p:312-323 is not listed on IDEAS
  22. Daniel S. Hamermesh, 2000. "Togetherness: Spouses' Synchronous Leisure, and the Impact of Children," NBER Working Papers 7455, National Bureau of Economic Research, Inc.
  23. Hamermesh, Daniel S, 1999. "The Timing of Work over Time," Economic Journal, Royal Economic Society, vol. 109(452), pages 37-66, January.
  24. Chiappori, Pierre-Andre, 1988. "Rational Household Labor Supply," Econometrica, Econometric Society, vol. 56(1), pages 63-90, January.
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