Review of Economic Studies Vol. 74 No. 2 2007

Collective Labour Supply: Heterogeneity and Non-Participation

Richard Blundell^1,2,3,4; Pierre-André Chiappori^5,6; Thierry Magnac⁷; Costas Meghir^1,8,4

¹ Institute for Fiscal Studies · ² IZA - Institute of Labor Economics · ³ Centre for Economic Policy Research · ⁴ University College London · ⁵ University of Chicago · ⁶ Columbia University · ⁷ Toulouse School of Economics · ⁸ Yale University

Abstract

We present identification and estimation results for the “collective” model of labour supply in which there are discrete choices, censoring of hours, and non-participation in employment. We derive the collective restrictions on labour supply functions and contrast them with restrictions implied by the usual “unitary” framework. Using the large changes in the wage structure between men and women in the U.K. over the last two decades, we estimate a collective labour supply model for married couples without children. The estimates of the sharing rule show that male wages and employment have a strong influence on bargaining power within couples.

DOI

10.1111/j.1467-937x.2007.00440.x

Volume

74

Issue

2

Pages

417-445

Language

en

Sources

bibtex:phds-export.bib openalex crossref

Cite

APA 7 MLA 9 Chicago (author–date) Harvard Elsevier Harvard (JFE, JBF…) The Accounting Review Academy of Management American Marketing Association INFORMS (Management Science) Copy citation Copied ✓