Collective Household Labor Supply: Nonparticipation and Income Taxation

Olivier Donni

No 140, Cahiers de recherche CREFE / CREFE Working Papers from CREFE, Université du Québec à Montréal

Abstract: In this paper, we adopt the usual assumptions of the collective approach, i.e. individualism and efficiency, to study household labor supply. The theoretical innovation is twofold. First, we incorporate the decision to participate in the labor market in the initial setting. Second, we abandon the assumption of linearity of the budget constraint. We show that (i) structural elements such as preferences or the outcome of the decision process can be recovered, and (ii) testable restrictions are generated from the observation of the household labor supplies. We also examine, for this model, how to simulate the incidence of fiscal reforms.

Dans cet article, nous adoptons les hypothèses habituelles de l'approche collective, à savoir, l'individualisme et l'efficacité, pour étudier l'offre de travail du ménage. L'innovation théorique est double. D'une part, nous incorporons dans le cadre initial la décision de participer au marché du travail. D'autre part, nous abandonnons l'hypothèse de linéarité de la contrainte budgetaire. Nous montrons alors que (i) des éléments structurels du processus de décision peuvent être retrouvés, et (ii) des restrictions testables sont générées de l'observation des offres de travail du ménage. Nous examinons également, pour ce modèle, comment faire des simulations de réformes fiscales.

Keywords: Collective Models; Labor Supply; Income Tax; Corner Solutions (search for similar items in EconPapers)
JEL-codes: H31 J22 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2001-09
New Economics Papers: this item is included in nep-cdm, nep-lab and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

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Related works:
Journal Article: Collective household labor supply: nonparticipation and income taxation (2003)
Working Paper: Collective household labor supply: nonparticipation and income taxation (2003)
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