Children and non-participation in a model of collective household labor supply

Jaime Andrés Sarmiento Espinel ()

Serie documentos de trabajo del Centro de Estudios Económicos from El Colegio de México, Centro de Estudios Económicos

Abstract: The collective model of household behavior is extended to consider the existence of public consumption, like expenditures on children, together with the possibility of non-participation in the labor market of one partner of the adult couple. This model argues that structural elements of the decision process, such as individual preferences and the intra-household distribution rule of non-public expenditure, can be identified by observing labor supply of each individual and total expenditures on the public good. The identification rests on the existence of a variable that affects household behavior only through its impact on the decision process, i.e. a distribution factor, and the existence and uniqueness of a reservation wage for each household member at which both members are indifferent to whether a member participates or not. This setting provides a conceptual framework for addressing issues related to the impact of the potential wage of a non-participating member on household allocations and the targeting of specific benefits or taxes.

Keywords: collective household models; children; labor supply; non-participation (search for similar items in EconPapers)
JEL-codes: D11 J13 J22 (search for similar items in EconPapers)
Date: 2012-05
New Economics Papers: this item is included in nep-dem, nep-lab and nep-lma
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Persistent link: https://EconPapers.repec.org/RePEc:emx:ceedoc:2012-14

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