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Intra-Household Allocation of Time and Resources: Empirical Evidence on a Sample of Italian Households with Young Children

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  • Maria Concetta Chiuri

    (University of Bari and CSEF, University of Salerno)

Abstract

This paper examines the labour supply decision of the household when the presence of pre-school children, creating non-separabilities in the use of time, is explicitly taken into account. A set of nested tests is obtained from the standard household utility model and from the collective one, both including a household production function measuring the quality of time provided to the children. The application of the tests to a sample of Italian households shows that the collective model considered in this paper cannot be rejected. For this demographic group we also find enough evidence against the income pooling hypothesis and against the Slutsky inter-person symmetry condition. However, the identification of the income sharing parameters shows that the distribution of the household non-labour income does not affect the household labour supply system. We also provide a measure of the bias implicit in the standard household utility approach, by comparing the labour supply elasticiticies obtained from the two models.

Suggested Citation

  • Maria Concetta Chiuri, 1999. "Intra-Household Allocation of Time and Resources: Empirical Evidence on a Sample of Italian Households with Young Children," CSEF Working Papers 15, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
  • Handle: RePEc:sef:csefwp:15
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    References listed on IDEAS

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    Cited by:

    1. Bargain, Olivier & Moreau, Nicolas, 2006. "Effets d’une réforme fiscale sur l’offre de travail des ménages dans un cadre collectif simulé," L'Actualité Economique, Société Canadienne de Science Economique, vol. 82(1), pages 207-246, mars-juin.
    2. Olivier Bargain & Miriam Beblo & Denis Beninger & Richard Blundell & Raquel Carrasco & Maria-Concetta Chiuri & François Laisney & Valérie Lechene & Nicolas Moreau & Michal Myck & Javier Ruiz-Castillo , 2006. "Does the Representation of Household Behavior Matter for Welfare Analysis of Tax-benefit Policies? An Introduction," Review of Economics of the Household, Springer, vol. 4(2), pages 99-111, June.
    3. Denis Beninger & François Laisney, 2006. "On the performance of unitary models of household labor supply estimated on “collective” data with taxation," Cahiers d'Economie et Sociologie Rurales, INRA Department of Economics, vol. 81, pages 5-36.
    4. Laisney, François & Beninger, Denis, 2002. "Comparison between unitary and collective models of household labor supply with taxation," ZEW Discussion Papers 02-65, ZEW - Leibniz Centre for European Economic Research.
    5. Olivier Bargain & Nicolas Moreau, 2002. "Is the collective model of labor supply useful for tax policy analysis ? A simulation exercise," DELTA Working Papers 2002-21, DELTA (Ecole normale supérieure).
    6. S.P. Premaratne, 2011. "Household Labour Supply in Sri Lanka for Urban Young Couple with Pre-school Children," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 12(2), pages 323-338, September.
    7. Del Boca, Daniela & Locatelli, Marilena & Vuri, Daniela, 2004. "Child Care Choices by Italian Households," IZA Discussion Papers 983, Institute of Labor Economics (IZA).
    8. Jara-Díaz, Sergio & Rosales-Salas, Jorge, 2017. "Beyond transport time: A review of time use modeling," Transportation Research Part A: Policy and Practice, Elsevier, vol. 97(C), pages 209-230.

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    More about this item

    Keywords

    Household labour supply; children;

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables

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