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Collective Labor Supply: a Single-Equation Model and Some Evidence from French Data

  • Olivier Donni
  • Nicolas Moreau

In Chiappori's (1988) collective model of labor supply hours of work are supposed flexible. In many countries, however, male labor supply does not vary much. In that case, the husband's labor supply is no longer informative about the household decision process and individual preferences. To identify structural components of the model, additional information is needed. We thus consider an approach in which the wife's labor supply is expressed as a function of the household demand for one specific good. We demonstrate that the main properties of Chiappori's initial model are preserved and apply our results on French data.

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Paper provided by CIRPEE in its series Cahiers de recherche with number 0516.

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Date of creation: 2005
Date of revision:
Handle: RePEc:lvl:lacicr:0516
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  1. Chiappori, P.A., 1994. "Introducing Household Production in Collective Models of Labour Suply," DELTA Working Papers 94-18, DELTA (Ecole normale supérieure).
  2. Vermeulen, Frederic, 2002. " Collective Household Models: Principles and Main Results," Journal of Economic Surveys, Wiley Blackwell, vol. 16(4), pages 533-64, September.
  3. 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.
  4. Manser, Marilyn & Brown, Murray, 1980. "Marriage and Household Decision-Making: A Bargaining Analysis," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 21(1), pages 31-44, February.
  5. Robin, J.M. & Smith, R.J., 1995. "Tests of Rank," Cambridge Working Papers in Economics 9521, Faculty of Economics, University of Cambridge.
  6. Andrew Clark & Hélène Couprie & Catherine Sofer, 2004. "La modélisation collective de l'offre de travail : Mise en perspective et application aux données britanniques," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00367129, HAL.
  7. Browning, Martin, 1992. "Children and Household Economic Behavior," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1434-75, September.
  8. Chavas, Jean-Paul, 1984. "The theory of mixed demand functions," European Economic Review, Elsevier, vol. 24(3), pages 321-344, April.
  9. Chiappori, Pierre-Andre, 1988. "Rational Household Labor Supply," Econometrica, Econometric Society, vol. 56(1), pages 63-90, January.
  10. Richard Blundell & Alan Duncan & Costas Meghir, 1995. "Estimating labour supply responses using tax reforms," IFS Working Papers W95/07, Institute for Fiscal Studies.
  11. Donni, Olivier, 2005. "Labor Supply, Home Production and Welfare Comparisons," IZA Discussion Papers 1511, Institute for the Study of Labor (IZA).
  12. 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.
  13. Richard Blundell & Pierre-Andr� Chiappori & Costas Meghir, 2005. "Collective Labor Supply with Children," Journal of Political Economy, University of Chicago Press, vol. 113(6), pages 1277-1306, December.
  14. Douglas Staiger & James H. Stock, 1994. "Instrumental Variables Regression with Weak Instruments," NBER Technical Working Papers 0151, National Bureau of Economic Research, Inc.
  15. Chesher, Andrew & Irish, Margaret, 1987. "Residual analysis in the grouped and censored normal linear model," Journal of Econometrics, Elsevier, vol. 34(1-2), pages 33-61.
  16. repec:tpr:qjecon:v:83:y:1969:i:1:p:60-78 is not listed on IDEAS
  17. Gronau, Reuben, 1977. "Leisure, Home Production, and Work-The Theory of the Allocation of Time Revisited," Journal of Political Economy, University of Chicago Press, vol. 85(6), pages 1099-1123, December.
  18. Apps, P.F. & Rees, R., 1996. "Collective Labor Supply and Household Production," Papers 301, Australian National University - Department of Economics.
  19. Blundell, Richard & Ham, John & Meghir, Costas, 1987. "Unemployment and Female Labour Supply," Economic Journal, Royal Economic Society, vol. 97(388a), pages 44-64, Supplemen.
  20. Hans G. Bloemen, 2004. "An Empirical Model of Collective Household Labour Supply with Nonparticipation," Tinbergen Institute Discussion Papers 04-010/3, Tinbergen Institute.
  21. repec:chk:cuhked:_093 is not listed on IDEAS
  22. 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.
  23. Chiappori, P.A., 1989. "Collective Labour Supply and Welfare," DELTA Working Papers 89-07, DELTA (Ecole normale supérieure).
  24. repec:bla:restud:v:53:y:1986:i:4:p:539-58 is not listed on IDEAS
  25. Martin Browning, 1998. "Modelling commodity demands and labour supply with m-demands," Discussion Papers 99-08, University of Copenhagen. Department of Economics.
  26. Joseph G. Altonji & Aloysius Siow, 1986. "Testing the Response of Consumption to Income Changes with (Noisy) PanelData," NBER Working Papers 2012, National Bureau of Economic Research, Inc.
  27. Joseph Altonji, 1984. "Intertemporal Substitution in Labor Supply: Evidence from Micro Data," Working Papers 562, Princeton University, Department of Economics, Industrial Relations Section..
  28. 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.
  29. Frederic Vermeulen, 2001. "And the winner is... An empirical evaluation of two competing approaches to household labour supply," Public Economics Working Paper Series ces0123, Katholieke Universiteit Leuven, Centrum voor Economische Studiën, Working Group Public Economics.
  30. Pierre-André Chiappori & Bernard Fortin & Guy Lacroix, 2001. "Marriage Market, Divorce Legislation and Household Labor Supply," CIRANO Working Papers 2001s-16, CIRANO.
  31. Newey, Whitney K., 1984. "A method of moments interpretation of sequential estimators," Economics Letters, Elsevier, vol. 14(2-3), pages 201-206.
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