Collective Labour Supply: Heterogeneity and Non-Participation

Richard Blundell (), Pierre Chiappori (), Thierry Magnac () and Costas Meghir ()

No 5287, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We present identification and estimation results for the 'collective' model of labour supply in which there are discrete choices, censoring of hours and non-participation 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 labour 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.

Keywords: collective models; labour supply (search for similar items in EconPapers)
JEL-codes: D11 D12 D13 D70 J22 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dcm and nep-lab
Date: 2005-10
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Related works:
Working Paper: Collective labour supply: heterogeneity and non-participation (1998)
Working Paper: Collective Labour Supply: Heterogeneity and Nonparticipation (2005)
Working Paper: Collective Labor Supply: Heterogeneity and Nonparticipation (2002)
Working Paper: Collective Labor Supply: Heterogeneity and Nonparticipation (2001)
Working Paper: Collective Labour Supply: Heterogeneity and Nonparticipation (2005)
Journal Article: Collective Labour Supply: Heterogeneity and Non-Participation (2007)
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