Empirical Estimation Results of a Collective Household Time Allocation Model

IZA Discussion Paper No. 2107

CESifo Working Paper Series No. 1716

Tinbergen Institute Discussion Paper No. 05-096/3

42 Pages Posted: 3 Nov 2005

See all articles by Chris van Klaveren

Chris van Klaveren

University of Amsterdam - Faculty of Economics and Business (FEB)

B.M.S. van Praag

University of Amsterdam - Faculty of Economics and Business (FEB); IZA Institute of Labor Economics; Tinbergen Institute in Amsterdam; CESifo (Center for Economic Studies and Ifo Institute)

Henriette Maassen van den Brink

University of Amsterdam

Date Written: May 2006

Abstract

In this paper an empirical model is developed where the collective household model is used as a basic framework to describe the time allocation problem. The collective model views household behavior as the outcome of maximizing a household utility function which is a weighted sum of the utility functions of the male and the female. The empirical research that has been done is mainly focused on testing and refuting the unitary model. Moreover, in the bulk of time allocation literature the main accent still lies on the development of theory. The novelty of this paper is that we empirically estimate the two individual utility functions and the household power weight distribution, which is parameterized per household. The model is estimated on a sub-sample of the British Household Panel Survey, consisting of two-earner households. The empirical results suggest that: (1) Given that the weight distribution is wage dependent, preferences of males and females differ, which rejects the unitary model; (2) the power differences are mainly explained by differences in the ratio of the partners' hourly wages; (3) although there are significant individual variations on average the power distribution in two-earner families is about even; (4) the male tends to be marginally more productive in performing household tasks than the female; (5) the preference for total household production is influenced by family size for the female but not for the male; and (6) both males and females have a backward-bending labor supply curve.

Keywords: collective household models, labor supply, intra-household, time allocation

JEL Classification: D12, D13, J22

Suggested Citation

Klaveren, Chris van and van Praag, Bernard and Maassen van den Brink, Henriette, Empirical Estimation Results of a Collective Household Time Allocation Model (May 2006). IZA Discussion Paper No. 2107, CESifo Working Paper Series No. 1716, Tinbergen Institute Discussion Paper No. 05-096/3, Available at SSRN: https://ssrn.com/abstract=835404 or http://dx.doi.org/10.2139/ssrn.835404

Chris van Klaveren (Contact Author)

University of Amsterdam - Faculty of Economics and Business (FEB) ( email )

Roetersstraat 11
Amsterdam, 1018 WB
Netherlands

Bernard Van Praag

University of Amsterdam - Faculty of Economics and Business (FEB) ( email )

Roetersstraat 11
Amsterdam, 1018 WB
Netherlands
31 20 5256018 (Phone)
31 20 5256013 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Tinbergen Institute in Amsterdam

Gustav Mahlerplein 117
Amsterdam, 1082 MS
Netherlands

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Henriette Maassen van den Brink

University of Amsterdam ( email )

Spui 21
Amsterdam, 1018 WB
Netherlands
+31 020 525 4311/4288 (Phone)

HOME PAGE: http://www1.fee.uva.nl/scholar/mdw/hmvdb/main.htm

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