TY - UNPB
T1 - Intrahousehold Commitment and Intertemporal Labor Supply
AU - Chiappori, Pierre André
AU - Giménez Nadal, José Ignacio
AU - Molina, José Alberto
AU - Theloudis, Alexandros
AU - Velilla, Jorge
PY - 2020/8/17
Y1 - 2020/8/17
N2 - This paper studies household labor supply, within the context of an intertemporal collective model, and three prominent intrahousehold commitment regimes: full commitment, no commitment, and limited commitment. We propose a test that distinguishes among all three alternatives based on how contemporary and historical changes to the economic environment affect household behavior. We implement the test on recent data from the Panel Study of Income Dynamics in the US (1999-2017). Although couples and singles behave similarly in many aspects, couples' labor supply exhibits distinctive features that are consistent with limited commitment. We then use our results to highlight several issues and caveats that arise when testing for commitment.
AB - This paper studies household labor supply, within the context of an intertemporal collective model, and three prominent intrahousehold commitment regimes: full commitment, no commitment, and limited commitment. We propose a test that distinguishes among all three alternatives based on how contemporary and historical changes to the economic environment affect household behavior. We implement the test on recent data from the Panel Study of Income Dynamics in the US (1999-2017). Although couples and singles behave similarly in many aspects, couples' labor supply exhibits distinctive features that are consistent with limited commitment. We then use our results to highlight several issues and caveats that arise when testing for commitment.
KW - Intertemporal collective model
KW - Household labor supply
KW - Commitment
KW - PSID
M3 - Working paper
T3 - Working papers
BT - Intrahousehold Commitment and Intertemporal Labor Supply
PB - LISER
CY - Esch-sur-Alzette
ER -