Nonparametric Analysis of Household Labor Supply: Goodness-of-Fit and Power of the Unitary and the Collective Model

Laurens Cherchye and Frederic Vermeulen

No 2004, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We compare the empirical performance of unitary and collective labor supply models, using representative data from the Dutch DNB Household Survey. We conduct a nonparametric analysis that avoids the distortive impact of an erroneously specified functional form for the preferences and/or the intrahousehold bargaining process. Our analysis focuses on the goodness-of-fit of the two behavioral models. To guarantee a fair comparison, we complement this goodness-of-fit analysis with a power analysis. Our results strongly favor the collective approach to modeling the behavior of multi-person households.

Keywords: nonparametric analysis; unitary model; collective model; labor supply; revealed preferences (search for similar items in EconPapers)
JEL-codes: C14 D12 J22 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2006-03
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Citations: View citations in EconPapers (5)

Published - published in: Review of Economics and Statistics, 2008, 90 (2), 267-274

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Related works:
Journal Article: Nonparametric Analysis of Household Labor Supply: Goodness of Fit and Power of the Unitary and the Collective Model (2008)
Working Paper: Nonparametric Analysis of Household Labor Supply: Goodness-of-Fit and Power of the Unitary and the Collective Model (2006)
Working Paper: Nonparametric Analysis of Household Labor Supply: Goodness-of-Fit and Power of the Unitary and the Collective Model (2006)
Working Paper: Nonparametric Analysis of Household Labour Supply: Goodness-of-Fit and Power of the Unitary and the Collective Model (2003)
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