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A Public Good Version of the Collective Household Model: An Empirical Approach with an Application to British Household Data

Chris Klaveren (), Bernard van Praag () and Henriette Maassen van den Brink
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Henriette Maassen van den Brink: University of Amsterdam

No 08-018/3, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: In this paper we consider an empirical collective household model of time allocation for twoearnerhouseholds. The novelty of this paper is that we estimate a version of the collectivehousehold model, where the internally produced goods and the externally purchased goodsare assumed to be public. The empirical results suggest that: (1) Preferences of men andwomen differ; (2) Although there are significant individual variations, on average the utilityfunctions of men and women are equally weighted in the household utility function; (3)Differences in the ratio of the partners' hourly wages are explanatory for how individualutilities are weighted in the household utility function. (4) The female's preference forhousehold production is influenced by family size, but this does not hold for the male; (5)Both the male and the female have a backward-bending labor supply curve; (6) Labor-supplycurves are forward-bending with respect to the partner's wage rate; (7) Our model rejects theunitary Slutsky symmetry condition. This discussion paper has resulted in a publication in the 'Review of Economics of the Household' , 2008, 6(2), 169-91.

Keywords: collective household models; household behavior; labor supply; intra-household; time allocation (search for similar items in EconPapers)
JEL-codes: D12 D13 J22 (search for similar items in EconPapers)
Date: 2008-02-18
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Journal Article: A public good version of the collective household model: an empirical approach with an application to British household data (2008) Downloads
Working Paper: A Public Good Version of the Collective Household Model: An Empirical Approach with an Application to British Household Data (2008) Downloads
Working Paper: A Public Good Version of the Collective Household Model: An Empirical Approach with an Application to British Household Data (2008) Downloads
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