Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/33398
Authors: 
Cherchye, Laurens
Vermeulen, Frederic
Year of Publication: 
2006
Series/Report no.: 
IZA Discussion Papers 2004
Abstract: 
We compare the empirical performance of unitary and collective labor supply models, using representative data from the Dutch DNB Household Survey. We conduct a nonparametric analysis that avoids the distortive impact of an erroneously specified functional form for the preferences and/or the intrahousehold bargaining process. Our analysis focuses on the goodness-of-fit of the two behavioral models. To guarantee a fair comparison, we complement this goodness-of-fit analysis with a power analysis. Our results strongly favor the collective approach to modeling the behavior of multi-person households.
Subjects: 
labor supply
collective model
unitary model
nonparametric analysis
revealed preferences
JEL: 
C14
D12
J22
Document Type: 
Working Paper

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