Collective Labour Supply: Heterogeneity and Nonparticipation

By Richard Blundell, Pierre-Andre Chiappori, T. Magnac, C. Meghir. Social Science Research Network, 2005

289 citations recorded by the source corpus.

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.

Subfields: Economics and Econometrics, Gender Studies, General Health Professions

View Paper: https://www.semanticscholar.org/paper/0ca81e47b5f9fc8a312cd864900968ce5b205dfb

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Citations in the corpus

Collective Labor Supply with Children (2002, unknown): “Indeed recent evidence suggests that this may well be the case (Browning and Chiappori, 1999 and Blundell et al., 2001).”
Yours, Mine, and Ours: Do Divorce Laws Affect the Intertemporal Behavior of Married Couples? (2015, unknown): “Equations (7) and (8) are analogous to the reduced-form Equations (4) and (5) from Section 3, estimated on the subsample of households living in community property states.”
Joint-Search Theory: New Opportunities and New Frictions (2009, background): “It is easy to see that the problem faced by this individual is exactly given by the equations (4), (5), and (6) and therefore it has the same solution as the joint-search problem.”