Household Labor Supply , Sharing Rule and the Marriage Market

Content Provider	Semantic Scholar
Author	Chiappori, Pierre-Andre Fortin, Bernard Lacroix, Guy L.
Copyright Year	1998
Abstract	In this paper we estimate a model of household labor supply based on the collective approach developed by Chiappori (JPE, 1992). This approach assumes that the intra-household decision process leads to Pareto e cient outcomes. Our model extends this theory by allowing the marriage market, and especially the sex ratio, to a ect the sharing rule and the household labor supplies. We show that our model imposes new restrictions on the parameters of the labor supply functions. Also, individual preferences and the sharing rule are recovered using an identi cation procedure that is both simpler and more robust than in Chiappori's initial approach. The model is estimated using PSID data for the year 1988. Our results do not reject the restrictions imposed by the model. Moreover, the sex ratio in uences the sharing rule and the labor supply behavior in the directions predicted by the theory. Finally, the impact of individual wage rates suggests that spouses behave in an altruistic manner within the household. This research received nancial support from le fonds FCAR, the Social Sciences and Humanities Research Council of Canada, the NSF and l'École des hautes études en sciences sociales. This paper was partly written while Fortin and Lacroix were visiting DELTA, whose hospitality and nancial support are gratefully acknowledged. We thank Martin Tabi for able research assistance. We are also grateful to Gary Becker, Chris Flynn, James Heckman, Derek Neal, Robert Pollak, Wilbert Van der Klauuw and seminar participants at the University of Chicago, the University of Essex, New York University and DELTA for useful comments. y Department of Economics, University of Chicago. Email: pchiappo@midway. uchicago.edu z Département d'économique, Université Laval and CRÉFA. Email: bernard.fortin @ecn.ulaval.ca x Département d'économique, Université Laval and CRÉFA. Email: guy.lacroix@ecn. ulaval.ca
File Format	PDF HTM / HTML
Alternate Webpage(s)	http://www.crefa.ecn.ulaval.ca/cahier/9811.pdf
Language	English
Access Restriction	Open
Subject Keyword	Appendix Arabic numeral 0 Cations Choice Behavior Donald Becker Ectomesenchymal Chondromyxoid Tumor Email Estimated FCAR gene Gareth Rees (software developer) Hydrogen Sulfide IBM Notes JPEG Manufactured Supplies Nash equilibrium Pareto efficiency RLN2 gene Science Selection bias Sex Characteristics Sex Factors Sex Ratio Social Sciences Thymic T-Cell Selection Utility functions on indivisible goods
Content Type	Text
Resource Type	Article