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Household Labor Supply, Sharing Rule and the Marriage Market

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Author Info
Chiappori, Pierre-André
Fortin, Bernard ()
Lacroix, Guy

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Abstract

In this paper we estimate a model of household labor supply based on the collective approach developed by Chiappori (JPE, 1992). This approach assumes that the intra-household decision process leads to Pareto efficient outcomes. Our model extends this theory by allowing the marriage market, and especially the sex ratio, to affect the sharing rule and the household labor supplies. We show that our model imposes new restrictions on the parameters of the labor supply functions. Also, individual preferences and the sharing rule are recovered using an identification procedure that is both simpler and more robust than in Chiappori's initial approach. The model is estimated using PSID data for the year 1988. Our results do not reject the restrictions imposed by the model. Moreover, the sex ratio influences the sharing rule and the labor supply behavior in the directions predicted by the theory. Finally, the impact of individual wage rates suggests that spouses behave in an altruistic manner within the household.

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File URL: http://www.ecn.ulaval.ca/w3/recherche/cahiers/1998/9810.pdf
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Paper provided by Université Laval - Département d'économique in its series Cahiers de recherche with number 9810.

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Date of creation: 1998
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Handle: RePEc:lvl:laeccr:9810

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Find related papers by JEL classification:
D1 - Microeconomics - - Household Behavior
D7 - Microeconomics - - Analysis of Collective Decision-Making

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  1. Sonia Oreffice, 2003. "Abortion and Female Power in the Household Evidence from Labor Supply," Working Papers 2003.41, Fondazione Eni Enrico Mattei. [Downloadable!]
  2. Josh Angrist, 2000. "Consequences of Imbalanced Sex Ratios: Evidence from America's Second Generation," NBER Working Papers 8042, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Jeremy Greenwood & Nezih Guner & and John Knowles, 1999. "More on marriage, fertility, and the distribution of income," Working Paper 9904, Federal Reserve Bank of Cleveland. [Downloadable!]
    Other versions:
  4. María Dolores Guilló & Antonia Díaz, 2000. "Family Ties And Unemployment," Working Papers. Serie AD 2000-07, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie). [Downloadable!]
  5. repec:ese:iserwp: is not listed on IDEAS
  6. Pierre-André Chiappori & Richard Blundell & Costas Meghir, 2002. "Collective labour supply with children," IFS Working Papers W02/08, Institute for Fiscal Studies. [Downloadable!]
    Other versions:
  7. Helmuth Cremer & Jean-Marie Lozachmeur & Pierre Pestieau, 2007. "Income Taxation of Couples and the Tax Unit Choice," CESifo Working Paper Series CESifo Working Paper No. , CESifo GmbH. [Downloadable!]
  8. Frederic Vermeulen, 2000. "Collective household models: principles and main results," Public Economics Working Paper Series ces0028, Katholieke Universiteit Leuven, Centrum voor Economische Studiën, Working Group Public Economics. [Downloadable!]
    Other versions:
  9. Elizabeth M. Caucutt & Nezih Guner & John Knowles, 2002. "Why Do Women Wait? Matching, Wage Inequality, and the Incentives for Fertility Delay," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 5(4), pages 815-855, October. [Downloadable!] (restricted)
  10. Zamora, Bernarda, 2000. "“Rationality in the Joint Allocation of Private and Public Goods”," MPRA Paper 6640, University Library of Munich, Germany. [Downloadable!]
  11. de la Rica, Sara & Dolado, Juan José & García-Peñalosa, Cecilia, 2008. "On Gender Gaps and Self-fulfilling Expectations: Theory, Policies and Some Empirical Evidence," IZA Discussion Papers 3553, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  12. François Bourguignon & Martin Browning & Pierre-André Chiappori, 2006. "Efficient Intra-household Allocations and Distribution Factors: Implications and Identification," CAM Working Papers 2006-02, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics. [Downloadable!]
  13. Gillian Hamilton & Aloysius Siow, 1999. "Marriage and Fertility in a Catholic Society: Eighteenth-Century Quebec," Working Papers siow-99-01, University of Toronto, Department of Economics. [Downloadable!]
  14. Antonia Díaz & M. Dolores Guilló, 2005. "Family ties and labor supply," Investigaciones Economicas, Fundación SEPI, vol. 29(2), pages 289-329, May. [Downloadable!]
  15. Antonella Caiumi & Federico Perali, 1999. "Children And Intrahousehold Distribution Of Resources: An Estimate Of The Sharing Rule Of Italian Households," CHILD Working Papers wp07_00, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY. [Downloadable!]
  16. Frances Woolley, 2000. "Control over Money in Marriage," Carleton Economic Papers 00-07, Carleton University, Department of Economics. [Downloadable!]
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