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American Economic Review Vol. 102 No. 7 2012

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

Laurens Cherchye1; Bram De Rock2; Frederic Vermeulen3

1 Center for Economic Studies, University of Leuven, E. Sabbelaan 53, B-8500 Kortrijk, Belgium. · 2 ECARES and ECORE, Université Libre de Bruxelles, Avenue F.D. Roosevelt 50, 1050 Brussels, Belgium. · 3 Netspar, CentER, Tilburg University, P O Box 90153, NL-5000 LE Tilburg, the Netherlands.

Abstract

We propose a collective labor supply model with household production that generalizes a model of Blundell, Chiappori and Meghir (2005). Adults'preferences 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 market goods with individuals'time. A new identification result, which uses production shifters, is developed. We apply our model to unique data on Dutch couples with children. Our application uses a novel estimation strategy that builds upon the familiar two-stage allocation representation of the collective model.

DOI
10.1257/aer.102.7.3377
Volume
102
Issue
7
Pages
3377-3405
Language
en
Sources
openalex bibtex:phds-export.bib crossref

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