Household labor supply: Collective evidence in developed countries

Chiappori, P.-A., Gimenez-Nadal, J.I., Molina, J.A. and J. Velilla (2022). Household labor supply: Collective evidence in developed countries. In Handbook in Labor, Human Resources and Population Economics (K.F. Zimmermann, Ed.). Springer, Cham.


This chapter reviews applied research on household collective labor supply, to show some empirical results in developed countries. The collective model of household labor supply is summarized, in which spouses allocate their resources so that they reach Pareto-efficient outcomes. The focus is on the evidence, up to 2020, from a number of developed countries (Australia, Belgium, Canada, China, Denmark, France, Germany, Italy, Japan, the Netherlands, Russia, Spain, the UK, and the USA). The first generalized result is that the collective model is supported by the data, in such a way that spouses’ hours of work and labor participation are Pareto efficient. Earnings, wages, and household nonlabor income are traditionally found to have an impact on household labor supply decisions, and not only own effects, but also cross effects are important (e.g., the impact of a husband’s wage on the hours of work of the wife, or vice versa).




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