A TEST OF THE UNITARY AND COLLECTIVE MODELS OF HOUSEHOLD LABOUR SUPPLY

Authors


  • We are grateful to Pierre-André Chiappori, Steve Gordon, Gauthier Lanot, Shelley Phipps, Thierry Magnac and seminar participants at Université Paris I and Delta for very useful comments on an earlier version. We also wish to thank Christine Laporte for exceptional research assistance. Financial support from SSHRC and le Fonds FCAR is also gratefully acknowledged.

Abstract

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.

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