We compare the empirical performance of unitary and collective labor supply models, using representative data from the Dutch DNB Household Survey. We conduct a nonparametric analysis that avoids the distortive impact of an erroneously specified functional form for the preferences and/or the intrahousehold bargaining process. Our analysis focuses on the goodness of fit of the two behavioral models. To guarantee a fair comparison, we complement this goodness-of-fit analysis with a power analysis. Our results strongly favor the collective approach to modeling the behavior of multiperson households.
|Journal||The Review of Economics and Statistics|
|Publication status||Published - 2008|
Cherchye, L. J. H., & Vermeulen, F. M. P. (2008). Nonparametric analysis of household labor supply: Goodness-of-fit and power of the unitary and the collective model. The Review of Economics and Statistics, 90(2), 267-274.