Commitment and the Dynamics of Household Labor Supply

Alexandros Theloudis, Jorge Velilla (), Pierre Chiappori, Ignacio Giménez-Nadal () and José Alberto Molina
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Ignacio Giménez-Nadal: University of Zaragoza
Authors registered in the RePEc Author Service: Jose Ignacio Gimenez-Nadal ()

No 1055, Boston College Working Papers in Economics from Boston College Department of Economics

Abstract: The extent to which individuals commit to their partner for life has important implications. This paper develops a lifecycle collective model of the household, through which it characterizes behavior in three prominent alternative types of commitment: full, limited, and no commitment. We propose a test that distinguishes between all three types based on how contemporaneous and historical news affect household behavior. Our test permits heterogeneity in the degree of commitment across households. Using recent data from the Panel Study of Income Dynamics, we reject full and no commitment, while we find strong evidence for limited commitment.

Keywords: Household behavior; Intertemporal choice; Commitment; Collective model; Family labor supply; Dynamics; Wages; PSID (search for similar items in EconPapers)
JEL-codes: D12 D13 D15 J22 J31 (search for similar items in EconPapers)
Date: 2022-11-18
New Economics Papers: this item is included in nep-lma
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Related works:
Journal Article: Commitment and the Dynamics of Household Labour Supply (2025)
Working Paper: Commitment and the dynamics of household labour supply (2025)
Working Paper: Commitment and the Dynamics of Household Labor Supply (2024)
Working Paper: Commitment and the Dynamics of Household Labor Supply (2022)
Working Paper: Commitment and the Dynamics of Household Labor Supply (2022)
Working Paper: Commitment and the Dynamics of Household Labor Supply (2022)
Working Paper: Commitment and the Dynamics of Household Labor Supply (2022)
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