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Intrahousehold Commitment and Intertemporal Labor Supply

Author

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  • Chiappori, Pierre-André

    (Columbia University)

  • Gimenez-Nadal, José Ignacio

    (University of Zaragoza)

  • Molina, José Alberto

    (University of Zaragoza)

  • Theloudis, Alexandros

    (Tilburg University)

  • Velilla, Jorge

    (University of Zaragoza)

Abstract

This paper studies household labor supply, within the context of an intertemporal collective model, and three prominent intrahousehold commitment regimes: full commitment, no commitment, and limited commitment. We propose a test that distinguishes among all three alternatives based on how contemporary and historical changes to the economic environment affect household behavior. We implement the test on recent data from the Panel Study of Income Dynamics in the US (1999-2017). Although couples and singles behave similarly in many aspects, couples' labor supply exhibits distinctive features that are consistent with limited commitment. We then use our results to highlight several issues and caveats that arise when testing for commitment.

Suggested Citation

  • Chiappori, Pierre-André & Gimenez-Nadal, José Ignacio & Molina, José Alberto & Theloudis, Alexandros & Velilla, Jorge, 2020. "Intrahousehold Commitment and Intertemporal Labor Supply," IZA Discussion Papers 13545, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp13545
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    Cited by:

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    5. Bautista-Lacambra, Sergio, 2020. "El ciclo vital en la familia:una estructura conceptual dinámica [A family's life-cycle: A conceptual dynamic structure]," MPRA Paper 102514, University Library of Munich, Germany.

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    More about this item

    Keywords

    intertemporal collective model; household labor supply; commitment; PSID;
    All these keywords.

    JEL classification:

    • D15 - Microeconomics - - Household Behavior - - - Intertemporal Household Choice; Life Cycle Models and Saving
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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