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Testing the Family "Common Preference" Model for Immigrant and Non-Immigrant Women's Labour Supply

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  • Urvashi Dhawan Biswal

Abstract

The objective of this paper is to test the "income-pooling" hypothesis implicit in the "common preference" model of the family for immigrant and non-immigrant, married women in Canada. We employ two cross-sections of the Family Expenditure Survey - 1986 and 1992. The hypothesis is tested against the "bargaining" model which belongs to an alternate class of family models known as "collective" models. Consistent with previous findings, we find that the pooling hypothesis is rejected for non-immigrant women. In addition, we find that the pooling hypothesis is also rejected for immigrant women. The rejection of the pooling hypothesis implies that the transfer income received by a wife and the transfer income received by a husband have different effects on labour supply. This has important policy implications as to the effect on women's labour supply of transfers received by her or her spouse under family policies such as the Child Tax Benefit in Canada.

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  • Urvashi Dhawan Biswal, 1999. "Testing the Family "Common Preference" Model for Immigrant and Non-Immigrant Women's Labour Supply," Canadian Public Policy, University of Toronto Press, vol. 25(s1), pages 95-114, November.
    • Handle: RePEc:cpp:issued:v:25:y:1999:i:s1:p:95-114
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    References listed on IDEAS

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    Cited by:

    1. Donni, Olivier & Molina, José Alberto, 2018. "Household Collective Models: Three Decades of Theoretical Contributions and Empirical Evidence," IZA Discussion Papers 11915, Institute of Labor Economics (IZA).
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    3. Alicia Adsera & Barry Chiswick, 2007. "Are there gender and country of origin differences in immigrant labor market outcomes across European destinations?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 20(3), pages 495-526, July.

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