Collective Labor Supply Research Articles

Family Tax Splitting: A Microsimulation of its Potential Labour
 Supply and Intra-household Welfare Effects in Germany

This paper assesses the effects that an introduction of the French family splitting mechanism would have on German families' labour supply and intra-household consumption behaviour. We use simulated real world microdata created by means of a 'deterministic' collective labour supply model. The data are generated by a compound procedure of estimation and calibration based on GSOEP data. In a microsimulation the present tax-benefit system with child benefit/allowance is replaced by a tax scheme with family splitting. The resulting changes in labour supply are surprisingly small, even for women. Welfare effects are also modest, but differ for husbands and wives.

Collective household labor supply: nonparticipation and income taxation

In this paper, we adopt the usual assumptions of the collective approach, i.e., individualism and efficiency, to study household labor supply. The theoretical innovation is 2-fold. First, we incorporate the decision to participate in the labor market in the initial setting. Second, we abandon the assumption of linearity of the budget constraint. We show that (i) structural elements such as preferences or the outcome of the decision process can be recovered, and (ii) testable restrictions are generated from the observation of the household labor supplies. We also examine, for this model, how to simulate the incidence of fiscal reforms.

Marriage Market, Divorce Legislation, and Household Labor Supply

This paper provides a theoretical framework for analyzing the impact of the marriage market and divorce legislation on household labor supply. In our approach, the sex ratio in the marriage market and the rules governing divorce are examples of “distribution factors.” These factors are defined as variables that affect the household members’ bargaining position but not preferences or the joint budget set. We extend the collective labor supply model developed by Chiappori to allow for distribution factors. We show that our model imposes new restrictions on the labor supply functions and eases the identification of individual preferences and the intrahousehold decision process. The model is estimated using PSID data for the year 1988. Our results do not reject the restrictions imposed by the model. Also, the sex ratio and divorce laws deemed favorable to women are found to affect labor supply behavior and the decision process in the directions predicted by the theory and to have sizable effects.

Une application d'un modèle collectif d'offre de travail sur données françaises

An Application of a Collective Labour Supply Model to French Data by Nicolas Moreau This paper estimates the Chiappori et alii ( 1 998) collective labour supply model using recent French data. The data only partially validate the model. Nevertheless, the estimates provide information on arrangements made within couples. When a wife's "divorce" threat is credible, she receives a larger share of the household's income from financial and real estate investments.

A Test of the Unitary and Collective Models of Household Labour Supply

This paper tests the unitary and the collective household labour supply models within a structural framework. A nonlinear unrestricted household labour supply system is postulated and the set of parametric restrictions imposed by each model is derived. Our results generally reject the income pooling restrictions embodied in the unitary model. Also, the symmetry of cross‐wage effects is rejected. However, the collective model is not rejected for groups with no pre‐school children.

Collective Labor Supply and Household Production

This paper emphasises the importance of incorporating household production into the 'collective model' of the household, and considers how and to what extent the results of Chiappori (1992) can be extended to this case. (This abstract was borrowed from another version of this item.)

Collective Labor Supply and Welfare

The paper develops a general, "collective" model of household labor supply in which agents are characterized by their own (possibly altruistic) preferences, and household decisions are only assumed to be Pareto efficient. An alternative interpretation is that there are two stages in the internal decision process: agents first share nonlabor income, according to some given sharing rule; then each one optimally chooses his or her own labor supply and consumption. This setting is shown to generate testable restrictions on labor supplies. Moreover, the observation of labor supply behavior is sufficient for recovering individual preferences and the sharing rule (up to a constant). Finally, the traditional tools of welfare analysis can be adapted to the new setting.

Team cohesion and collective-labor supply in Chinese agriculture

This paper focuses on the degree of cohesion within Chinese production teams as a determinant of household incentives and collective-sector labor supply. Effects of changes in crop-procurement prices and fixed charges on the labor supply to the collective sector, labor allocation under alternative income-distribution systems, and the incentives to apply peer pressure to increase collective work effort are considered in the context of a simple household utility-maximization model. The results suggest that increasing the degree of cohesion within teams may lessen the severity of the trade-off between agricultural output and the transition to need-based distribution systems.