Multi-family households in a labour supply model: a calibration method with application to Poland

Peter Haan and Michal Myck

Applied Economics, 2012, vol. 44, issue 22, 2907-2919

Abstract: Models of cooperative and noncooperative behaviour opened the household ‘black box’ and allowed for individual treatment of partners in couples. However, labour supply literature has so far largely ignored a broader issue -- the distinction of single versus multi-family (‘complex’) households. We propose a method to account for multi-family household structure by borrowing from recent applications of the collective model to identify the degree of sharing. We assume that each household is characterized by a between-family sharing parameter, which is calibrated on estimated preferences, observed labour market status and other characteristics. We apply the method to Polish labour market data.

Date: 2012
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Related works:
Working Paper: Multi-family households in a labour supply model: a calibration method with application to Poland (2011)
Working Paper: Multi-Family Households in a Labour Supply Model: A Calibration Method with Application to Poland (2008)
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DOI: 10.1080/00036846.2011.568402

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