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.
Authors
CPP Co-Director
Richard is Co-Director of the Centre for the Microeconomic Analysis of Public Policy (CPP) and Senior Research Fellow at IFS.
Research Fellow Yale University
Costas is a Research Fellow of the IFS and a Professor of Economics at Yale University and a Visiting Professor at University College London.
Research Associate Toulouse School of Economics
Thierry is a Research Associate of IFS, a Research Fellow at CEPR, London and a Professor of Economics at the University of Toulouse,
Columbia University
Journal article details
- DOI
- 10.1111/j.1467-937X.2007.00440.x
- Publisher
- Oxford Academic
- Issue
- Volume 74, Issue 2, April 2007
Suggested citation
Blundell, R et al. (2007). 'Collective labor supply: heterogeneity and nonparticipation' 74, Issue 2(2007)
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