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Title:Collective labour supply: heterogeneity and nonparticipation PDF Logo
Authors:Blundell, Richard W.
Chiappori, Pierre-André
Magnac, Thierry
Meghir, Costas
Issue Date:2005
Series/Report no.:IZA Discussion Papers 1785
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.
Subjects:collective models
labor supply
JEL:D11
D12
D13
D70
J22
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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