This paper proposes an extension of the collective model for labor supply developed by Chiappori, Fortin and Lacroix (2002) to an intertemporal setting. We first develop a theoretical model to analyze the intra-household distribution of wealth in a multi-period framework, with a focus on labor supply and marriage markets. The model allows us to derive a sharing rule for non-labor income under a set of testable conditions. Second, using data from the Panel Study of Income Dynamics from years 1997 to 2015, we estimate the model using a semi-log parametrization of labor supply. Our empirical results do not reject the restrictions of the model, and point to the validity of the collective framework in an intertemporal setting.
We show that wages are positively related to household labor supply, although cross and lagged effects show negative correlates. Furthermore, the ability of wives to negotiate the intra-household allocation of non-labor income is mainly driven by wages, with wives behaving altruistically, and husbands egoistically. Sex ratios appear to be nonsignificant in this relationship, although counteracting effects between labor and marriage markets may influence estimates.
We use cookies to provide you with an optimal website experience. This includes cookies that are necessary for the operation of the site as well as cookies that are only used for anonymous statistical purposes, for comfort settings or to display personalized content. You can decide for yourself which categories you want to allow. Please note that based on your settings, you may not be able to use all of the site's functions.
Cookie settings
These necessary cookies are required to activate the core functionality of the website. An opt-out from these technologies is not available.
In order to further improve our offer and our website, we collect anonymous data for statistics and analyses. With the help of these cookies we can, for example, determine the number of visitors and the effect of certain pages on our website and optimize our content.