Intertemporal labor supply and intra-household commitment / Pierre André Chiappori (Columbia University), José Alberto Molina (University of Zaragoza and IZA), José Ignacio Giménez-Nadal (University of Zaragoza), Jorge Velilla (University of Zaragoza) ; IZA Institute of Labor Economics
VerfasserChiappori, Pierre-André ; Molina, José Alberto ; Gimenez-Nadal, José Ignacio ; Velilla, Jorge
KörperschaftForschungsinstitut zur Zukunft der Arbeit
ErschienenBonn, Germany : IZA Institute of Labor Economics, May 2019
Elektronische Ressource
Umfang1 Online-Ressource (28 Seiten) : Diagramme
SerieDiscussion paper ; no. 12353
 Das Dokument ist öffentlich zugänglich im Rahmen des deutschen Urheberrechts.
Intertemporal labor supply and intra-household commitment [0.33 mb]
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Zusammenfassung (Englisch)

This paper adopts an intertemporal labor supply perspective to propose a test that allows us to distinguish between intra-household non-commitment, limited commitment, and full commitment. It investigates whether, after controling for current and future (expected) wages, past wage shocks have a lasting and significant impact on present labor supply and public consumption. Using a semi-log parametrization of labor supply and data from the Panel Study of Income Dynamics for the US, the paper shows positive evidence in favor of the limited commitment model. Specifically, unexpected past wage shocks affect labor supply in exactly the way predicted by theory, as spouses' past wage deviations have a negative impact on their labor supply and a positive impact on their spouses'. In addition, wives' past wage shocks also impact negatively household public expenditure on housing.