Collective labor supply with children and non-participation: Evidence from Mexico
We extend the collective model of household behavior to consider both public consumption (expenditures on children), as well as non-participation in the labor market. Identification of individual preferences and the sharing rule derived by observing each individual’s labor supply and the total expenditure on the public good rest on the existence of a distribution factor and on the existence and uniqueness of individual reservation wages at which both members are indifferent as to whether a member participates or not. Using a sample of Mexican nuclear families, collective rationality is not rejected. No evidence is found that empowering mothers is more beneficial for children than empowering fathers.
Amemiya, T. 1985. Advanced Econometrics, Cambridge, MA: Harvard University Press.
Angrist, J. 2002. How do sex ratios affect marriage and labor markets? Evidence from America’s second generation, Quarterly Journal of Economics, 117(3):997-1038.
Apps, P. F. and R. Rees. 1997. Collective labor supply and household production, Journal of Political Economy, 105(1): 178-190.
Arceo, E. O. and R. M. Campos. 2010. Labor supply of married women in Mexico: 1990-2000, WP, no. 2010-16, CEE, El Colegio de México.
Attanasio, O. and V. Lechene. 2002. Tests of income pooling in household decisions, Review of Economic Dynamics, 5(4): 720-748.
Bloemen, H. G. 2010. An empirical model of collective household labour supply with non-participation, The Economic Journal, 120(543): 183-214.
Blundell, R., P. A. Chiappori, T. Magnac and C. Meghir. 2007. Collective labour supply: Heterogeneity and non-participation, Review of Economic Studies, 74(2): 417-445.
Blundell, R., P. A. Chiappori and C. Meghir. 2005. Collective labor supply with children, Journal of Political Economy, 113(6): 1277-1306.
Blundell, R., T. MaCurdy and C. Meghir. 2007. Labor supply models: Unobserved heterogeneity, nonparticipation and dynamics, in J. J. Heckman and E.E. Leamer (eds.), Handbook of Econometrics, vol. 6A, pp. 4667-4775, Elsevier.
Blundell, R., P. Pashardes and G. Weber. 1993. What do we learn about consumer demand patterns from micro data? American Economic Review, 83(3): 570-597.
Bourguignon, F. J., M. Browning, P. A. Chiappori and V. Lechene. 1993. Intra household allocation of consumption: A model and some evidence from French data, Annales d’Economie et de Statistique, (29): 137-156.
Browning, M., F. Bourguignon, P. A. Chiappori and V. Lechene. 1994. Income and outcomes: A structural model of intrahousehold allocation, Journal of Political Economy, 102(6): 1067-1096.
Browning, M. and P. A. Chiappori. 1998. Efficient intra-household allocations: a general characterization and empirical tests, Econometrica, 66(6): 1241-1278.
Browning, M., P. A. Chiappori and Y. Weiss. 2014. Economics of the Family Cambridge University Press.
Browning, M. and C. Meghir. 1991. The effects of male and female labor supply on commodity demands, Econometrica, 59(4): 925-951.
Cherchye, L., B. de Rock and F. Vermeulen. 2012. Married with children: A collective labor supply model with detailed time use and intrahousehold expenditure information, American Economic Review 102(7): 3377-3405.
Chiappori, P. A. 1988. Rational household labor supply, Econometrica, 56(1):63-90.
Chiappori, P. A. 1992. Collective labor supply and welfare, Journal of Political Economy, 100(3): 437-467.
Chiappori, P. A. 1997. Introducing household production in collective models of labor supply, Journal of Political Economy, 105(1): 191-209.
Chiappori, P. A. and I. Ekeland. 2009. The microeconomics of efficient group behavior: Identification, Econometrica, 77(3): 763-799.
Chiappori, P. A., B. Fortin and G. Lacroix. 2002. Marriage market, divorce leg- islation and household labor supply, Journal of Political Economy, 110(1): 37-72.
CIDE-UIA-INEGI. 2012. Mexican Family Life Survey (MxFLS), <http://www.ennvih-mxfls.org/english/index.html.>;
Donni, O. 2003. Collective household labor supply: Nonparticipation and income taxation, Journal of Public Economics, 87(5-6): 1179-1198.
Donni, O. 2007. Collective female labour supply: Theory and application, Economic Journal, 117(516): 94-119.
Donni, O. 2008. Labor supply, home production, and welfare comparisons, Journal of Public Economics, 92(7): 1720-1737.
Donni, O. and E. Matteazzi. 2016. Collective decisions, household production, and the labor force participation, THEMA Working Paper, no. 2016-05, Université de Cergy-Pontoise.
Fortin, B. and G. Lacroix. 1997. A test of the unitary and collective models of household labour supply, Economic Journal, 107(443): 933-955.
Green, J. and W. P. Heller. 1981. Mathematical analysis and convexity with applications to economics, in K. Arrow and M. Intriligator (eds.), Handbook of Mathematical Economics, vol. 1, pp. 15-52, Elsevier.
Grossbard-Shechtman, S. A. and S. Neuman 2003. Marriage and work for pay, in S.A. Grossbard-Shechtman (ed.), Marriage and the Economy: Theory and Evidence from Advanced Industrial Societies, pp. 222-247, Cambridge: Cambridge University Press.
Handa, S., A. Peterman, B. Davis and M. Stampini. 2009. Opening up Pandora’s box: The effect of gender targeting and conditionality on household spending behavior in Mexico’s Progresa program, World Development, 37(6): 1129-1142.
Instituto Nacional de Estadística y Geografía (INEGI). 2005. Conteo de población y vivienda, México. http://www.beta.inegi.org.mx/proyectos/ccpv/2005/.
Kapteyn, A., P. Kooreman and A. van Soest. 1990. Quantity rationing and concavity in a flexible household labor supply model, Review of Economics and Statistics, 72 (1): 55-62.
Lundberg, S., R. A. Pollak and T. J. Wales. 1997. Do husbands and wives pool their resources? Evidence from the United Kingdom child benefit, Journal of Human Resources, 32(3): 463-480.
Maddala, G. 1983. Limited-Dependent and Qualitative Variables in Econometrics, Cambridge: Cambridge University Press.
Magnus, J. R. and H. Neudecker. 2007. Matrix Differential Calculus with Applications in Statistics and Econometrics, 3rd ed., Chichester: John Wiley & Sons.
Mroz, T. A. 1987. The sensitivity of an empirical model of married women’s hours of work to economic and statistical assumptions, Econometrica, 55(4): 765-799.
Neary, J. and K. Roberts. 1980. The theory of household behaviour under rationing, European Economic Review, 13(1): 25-42.
Park, C. 2007. Marriage market, parents’ bargaining powers, and children’s nutrition and education, Oxford Bulletin of Economics and Statistics, 69(6):773-793.
Sarmiento Espinel, J. A. 2012. Parental investment in their children’s education, WP 2012-09, CEE, El Colegio de Mexico.
Stern, N. 1986. On the specification of labour supply functions, in R. Blundell and I.Walker (eds.), Unemployment, Search and Labour Supply, Cambridge: Cambridge University Press.
Thomas, D. 1990. Intra-household resource allocation: An inferential approach, Journal of Human Resources, 25(4): 635-664.
Vermeulen, F. 2002. Collective household models: Principles and main results, Journal of Economic Surveys, 16(4): 533564.
Wooldridge, J. M. 2010. Econometric Analysis of Cross Section and Panel Data, 2nd ed., Cambridge, MIT Press.
Yoong, J., L. Rabinovich and S. Diepeveen. 2012. The impact of economic resource transfers to women versus men: a systematic review, EPPI-Center technical report 2001, Institute of Education, University of London.