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Multi-family Households in a Labour Supply Model: A Calibration Method with Application to Poland

Referierte Aufsätze Web of Science

Peter Haan, Michal Myck

In: Applied Economics 44 (2012), 22, S. 2907-2919

Abstract

Models of cooperative and noncooperative behaviour opened the household "black box" and allowed for individual treatment of partners in couples. However, labour supply literature has so far largely ignored a broader issue - the distinction of single versus multi-family ("complex") households. We propose a method to account for multi-family household structure by borrowing from recent applications of the collective model to identify the degree of sharing. We assume that each household is characterized by a between-family sharing parameter, which is calibrated on estimated preferences, observed labour market status and other characteristics. We apply the method to Polish labour market data.

Peter Haan

Head of Department in the Public Economics Department



JEL-Classification: J22;I38;D13
Keywords: work incentives, within-household sharing, labour supply, transition
DOI:
http://dx.doi.org/10.1080/00036846.2011.568402

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