Married with children: A collective labor supply model with detailed time use and intrahousehold expenditure information

L.J.H. Cherchye, B. de Rock, F.M.P. Vermeulen

Research output: Contribution to journalArticleScientificpeer-review

68 Citations (Scopus)

Abstract

We propose a collective labor supply model with household production that generalizes a model of Blundell, Chiappori, and Meghir (2005). Adults' preferences depend not only 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.
Original languageEnglish
Pages (from-to)3377-3405
JournalAmerican Economic Review
Volume102
Issue number7
DOIs
Publication statusPublished - 2012

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