Married with Children: A Collective Labor Supply Model with Detailed Time Use and Intrahousehold Expenditure Information

Laurens Cherchye, Bram De Rock and Frederic Vermeulen

No 5190, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We propose a collective labor supply model with household production that generalizes an original model of Blundell, Chiappori and Meghir (2005). In our model, adults' individual preferences do not only depend on own leisure and individual private consumption of market goods. They also depend on the consumption of domestic goods, which are produced by combining goods bought at the market with individuals' time. We apply our model to new and unique data on Dutch couples with children. The data contains detailed information about the spouses' time use and the intrahousehold allocation of all expenditures. Our application uses a novel estimation strategy that builds upon the familiar two-stage allocation representation of the collective model. We obtain interesting (and plausible) empirical results. Spouses’ preferences depend on the consumption of domestically produced goods (including children's welfare). Next, Pareto weights depend on variables like the individual wages and the share in the household’s nonlabor income. Finally, and perhaps surprisingly, we do not find evidence that mothers care more for their children than fathers.

Keywords: household production; public goods; time use; labor supply; collective model (search for similar items in EconPapers)
JEL-codes: D11 D12 D13 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2010-09
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (25)

Published - published in: American Economic Review, 2012, 102 (17), 3377-3405

Downloads: (external link)
https://docs.iza.org/dp5190.pdf (application/pdf)

Related works:
Journal Article: Married with Children: A Collective Labor Supply Model with Detailed Time Use and Intrahousehold Expenditure Information (2012)
Working Paper: Married with Children: A Collective Labor Supply Model with Detailed Time Use and Intrahousehold Expenditure Information (2012)
Working Paper: Married with children: a collective labor supply model with detailed time use and intrahousehold expenditure information (2010)
Working Paper: Married with Children: A Collective Labor Supply Model with Detailed Time Use and Intrahousehold Expenditure Information (2010)
Working Paper: Married with Children: A Collective Labor Supply Model with Detailed Time Use and Intrahousehold Expenditure Information (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp5190

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().