Collective Labour Supply: Heterogeneity and Nonparticipation

Richard Blundell (), Pierre Chiappori, Thierry Magnac and Costas Meghir

No 1785, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We present identification and estimation results for the "collective" model of labour supply in which there are discrete choices, censoring of hours and nonparticipation in employment. We derive the collective restrictions on labour supply functions and contrast them with restrictions implied by the usual "unitary" framework. Using the large changes in the wage structure between men and women in the UK over the last two decades we estimate a collective labor supply model for married couples without children. The implications of the unitary framework are rejected while those of the collective approach are not. The estimates of the sharing rule show that wages have a strong influence on bargaining power within couples.

Keywords: collective models; labor supply (search for similar items in EconPapers)
JEL-codes: D11 D12 D13 D70 J22 (search for similar items in EconPapers)
Pages: 58 pages
Date: 2005-09
New Economics Papers: this item is included in nep-dcm and nep-ltv
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

Published - published in: Review of Economic Studies, 2007, 74 (2), 417-445

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https://docs.iza.org/dp1785.pdf (application/pdf)

Related works:
Journal Article: Collective Labour Supply: Heterogeneity and Non-Participation (2007)
Working Paper: Collective Labour Supply: Heterogeneity and Non-Participation (2005)
Working Paper: Collective Labour Supply: Heterogeneity and Nonparticipation (2005)
Working Paper: Collective Labor Supply: Heterogeneity and Nonparticipation (2002)
Working Paper: Collective Labor Supply: Heterogeneity and Nonparticipation (2001)
Working Paper: Collective labour supply: heterogeneity and non-participation (1998)
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