Household Production in a Collective Model: Some New Results

Household models estimated on labour supplies alone generally assume non-market time to be pure leisure. Previous work on collective household decision-making is extended here by taking domestic work into account in the Chiappori et al. (J Polit Econ 110(1):37–72, 2002) model. Derivatives of the household “sharing rule” can then be estimated in a similar way. Using the 1998 French Time-Use Survey, we compare estimates of labour supply functions assuming first that non-market time is pure leisure and then taking household production into account. The results are similar but more robust when household production is included. Collective rationality is rejected when domestic work is omitted