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On the Importance of Household Production in Collective Models: Evidence from U.S. Data

  • Donni, Olivier

    ()

    (University of Cergy-Pontoise)

  • Matteazzi, Eleonora

    ()

    (University of Verona)

The present paper develops a theoretical model of labor supply with domestic production. It is shown that the structural components of the model can be identified without a distribution factor, thereby generalizing the initial results of Apps and Rees (1997) and Chiappori (1997). The theoretical model is then estimated using the ATUS data. The empirical results are compared to those obtained from a similar model without domestic production.

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File URL: http://ftp.iza.org/dp4944.pdf
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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4944.

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Length: 38 pages
Date of creation: May 2010
Date of revision:
Publication status: published in: Annals of Economics and Statistics, 2012, 105/106, 99-126
Handle: RePEc:iza:izadps:dp4944
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References listed on IDEAS
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  1. Martin Browning & Pierre-André Chiappori & Arthur Lewbel, 2013. "Estimating Consumption Economies of Scale, Adult Equivalence Scales, and Household Bargaining Power," Review of Economic Studies, Oxford University Press, vol. 80(4), pages 1267-1303.
  2. Olivier Donni, 2001. "Collective Female Labor Supply: Theory and Application," Cahiers de recherche CREFE / CREFE Working Papers 141, CREFE, Université du Québec à Montréal.
  3. Richard Blundell & André Chiappori & Thierry Magnac & Costas Meghir, 1998. "Collective labour supply: heterogeneity and non-participation," IFS Working Papers W98/20, Institute for Fiscal Studies.
  4. Donni, Olivier, 2005. "Labor Supply, Home Production and Welfare Comparisons," IZA Discussion Papers 1511, Institute for the Study of Labor (IZA).
  5. repec:ner:tilbur:urn:nbn:nl:ui:12-364376 is not listed on IDEAS
  6. Apps, P.F. & Rees, R., 1993. "Labour Supply, Household Production and Intra-Family Welfare Distribution," Working Papers 1993-3, University of Guelph, Department of Economics and Finance.
  7. Badi H. BALTAGI & Susan GARVIN & Stephen KERMAN, 1989. "Further Monte Carlo Evidence on Seemingly Unrelated Regressions with Unequal Number of Observations," Annales d'Economie et de Statistique, ENSAE, issue 14, pages 103-115.
  8. Schmidt, Peter, 1977. "Estimation of seemingly unrelated regressions with unequal numbers of observations," Journal of Econometrics, Elsevier, vol. 5(3), pages 365-377, May.
  9. 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.
  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 178-90, February.
  11. Kapteyn, Arie & Kooreman, Peter & van Soest, Arthur, 1990. "Quantity Rationing and Concavity in a Flexible Household Labor Supply Model," The Review of Economics and Statistics, MIT Press, vol. 72(1), pages 55-62, February.
  12. John Pencavel, 2002. "A Cohort Analysis of the Association between Work Hours and Wages among Men," Journal of Human Resources, University of Wisconsin Press, vol. 37(2), pages 251-274.
  13. Olivier Donni, 2001. "Collective Household Labor Supply: Nonparticipation and Income Taxation," Cahiers de recherche CREFE / CREFE Working Papers 140, CREFE, Université du Québec à Montréal.
  14. Chiappori, P.A., 1989. "Collective Labour Supply and Welfare," DELTA Working Papers 89-07, DELTA (Ecole normale supérieure).
  15. John Pencavel, 2005. "A Life Cycle Perspective on Changes in Earnings Inequality Among Married Men and Women," Discussion Papers 04-036, Stanford Institute for Economic Policy Research.
  16. François Bourguignon & Thierry Magnac, 1990. "Labor Supply and Taxation in France," Journal of Human Resources, University of Wisconsin Press, vol. 25(3), pages 358-389.
  17. Chiappori, Pierre-Andre, 1988. "Rational Household Labor Supply," Econometrica, Econometric Society, vol. 56(1), pages 63-90, January.
  18. HansG. Bloemen, 2010. "An Empirical Model of Collective Household Labour Supply with Non-Participation," Economic Journal, Royal Economic Society, vol. 120(543), pages 183-214, 03.
  19. Hausman, Jerry & Ruud, Paul, 1984. "Family Labor Supply with Taxes," American Economic Review, American Economic Association, vol. 74(2), pages 242-48, May.
  20. Graham, John W & Green, Carole A, 1984. "Estimating the Parameters of a Household Production Function with Joint Products," The Review of Economics and Statistics, MIT Press, vol. 66(2), pages 277-82, May.
  21. Aronsson, Thomas & Daunfeldt, Sven-Olov & Wikström, Magnus, 1999. "Estimating Intrahousehold Allocation in a Collective Model With Household Production," Umeå Economic Studies 495, Umeå University, Department of Economics.
  22. Helene Couprie, 2003. "Time allocation within the family: welfare implications of life in a couple," Labor and Demography 0312003, EconWPA.
  23. Chiappori, Pierre-André & Fortin, Bernard & Lacroix, Guy, 1998. "Household Labor Supply, Sharing Rule and the Marriage Market," Cahiers de recherche 9810, Université Laval - Département d'économique.
  24. Olivier Donni & Nicolas Moreau, 2007. "Collective Labor Supply: A Single-Equation Model and Some Evidence from French Data," Journal of Human Resources, University of Wisconsin Press, vol. 42(1).
  25. Gronau, Reuben, 1980. "Home Production-A Forgotten Industry," The Review of Economics and Statistics, MIT Press, vol. 62(3), pages 408-16, August.
  26. Fortin, Bernard & Lacroix, Guy, 1997. "A Test of the Unitary and Collective Models of Household Labour Supply," Economic Journal, Royal Economic Society, vol. 107(443), pages 933-55, July.
  27. Benoît Rapoport & Catherine Sofer & Anne Solaz, 2011. "Household production in a collective model: some new results," Journal of Population Economics, Springer, vol. 24(1), pages 23-45, January.
  28. Donni, O., 2000. "Collective Female Labor Supply: Theory," DELTA Working Papers 2000-08, DELTA (Ecole normale supérieure).
  29. Paul J. Devereux, 2003. "Changes in male labor supply and wages," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 56(3), pages 409-428, April.
  30. Chiappori, Pierre-André & Donni, Olivier, 2009. "Non-unitary Models of Household Behavior: A Survey of the Literature," IZA Discussion Papers 4603, Institute for the Study of Labor (IZA).
  31. Powell, James L, 1986. "Symmetrically Trimmed Least Squares Estimation for Tobit Models," Econometrica, Econometric Society, vol. 54(6), pages 1435-60, November.
  32. repec:dgr:uvatin:20040010 is not listed on IDEAS
  33. George J. Borjas, 1980. "The Relationship between Wages and Weekly Hours of Work: The Role of Division Bias," Journal of Human Resources, University of Wisconsin Press, vol. 15(3), pages 409-423.
  34. Eric J. Solberg & David C. Wong, 1992. "Family Time Use: Leisure, Home Production, Market Work, and Work Related Travel," Journal of Human Resources, University of Wisconsin Press, vol. 27(3), pages 485-510.
  35. Paul J. Devereux, 2004. "Changes in Relative Wages and Family Labor Supply," Journal of Human Resources, University of Wisconsin Press, vol. 39(3).
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