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Endogeneous Household Interaction

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  • Daniela Del Boca
  • Christopher Flinn

Abstract

There is a long history of the theoretical and empirical investigation of the labor supply decisions of married women. Perhaps the starting point for modern econometric analysis of this question is Heckman (1974), in which a neoclassical model of wives’ labor supply was estimated using disaggregated data. He explicitly estimated the parameters characterizing a household utility function, which included as arguments the leisure levels of wives and household consumption. With the addition of a wage function, Heckman was able to consistently estimate household preference parameters and the wage function in a manner that eliminated the types of endogenous sampling problems known to create estimator bias when the participation decision is ignored....

Suggested Citation

  • Daniela Del Boca & Christopher Flinn, 2009. "Endogeneous Household Interaction," CHILD Working Papers wp08_09, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
    • Handle: RePEc:wpc:wplist:wp08_09
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    References listed on IDEAS

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    More about this item

    Keywords

    Household Time Allocation; Grim Trigger Strategy; Household Production; Method of Simulated Moments;
    All these keywords.

    JEL classification:

    • C79 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Other
    • D19 - Microeconomics - - Household Behavior - - - Other
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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