Collective Labour Supply: Heterogeneity and Non-Participation |
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| Authors: | RICHARD BLUNDELL PIERRE-ANDRE CHIAPPORI THIERRY MAGNAC COSTAS MEGHIR |
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| Institution: | University College London and Institute for Fiscal Studies; University of Chicago and Columbia University; GREMAQ and IDEI, Universitédes Sciences Sociales; University College London and Institute for Fiscal Studies |
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| 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. |
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