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We analyze equally competitive spouses competing for promotion in their respective workplaces and show that an asymmetric equilibrium featuring household specialization can arise. Examples where the asymmetric equilibrium is welfare-superior to the symmetric equilibrium are highlighted. By...
Persistent link: https://www.econbiz.de/10013168051
The paper re-examines the idea that a family can be viewed as a community governed by a self-enforcing constitution, and extends existing results in two directions. First, it identifies circumstances in which a constitution is renegotiation-proof. Second, it introduces parental altruism. The...
Persistent link: https://www.econbiz.de/10012784207
We analyze equally competitive spouses competing for promotion in their respective workplaces and show that an asymmetric equilibrium featuring household specialization can arise. Examples where the asymmetric equilibrium is welfare-superior to the symmetric equilibrium are highlighted. By...
Persistent link: https://www.econbiz.de/10013175695
We present a non-cooperative model of a family's time allocation between work and a home-produced public good, and examine whether the income tax should apply to couples or individuals. While tax-induced labor supply distortions lead to overprovision of the public good, spouses' failure to...
Persistent link: https://www.econbiz.de/10013139871
We consider the collective model of labor supply with marketable domestic production. We first show that, if domestic production is mistakenly ignored, the "collective" indirect utilities that are retrieved from observed behavior will be unbiased if and only if the profit function is additive....
Persistent link: https://www.econbiz.de/10013318665
The existing literature suggests that the concern for economic efficiency calls for individual taxation of married couples with a higher rate on the primary earner. This paper reconsiders the choice of tax unit in the Becker model of household production, which includes previous analyses as...
Persistent link: https://www.econbiz.de/10013320722
Recent work criticises both the logic and relevance of the theoretical basis of the approach to estimating the costs of raising children adopted in much of the economics literature. This tends to be restricted purely to models in which the household members consume market goods with given...
Persistent link: https://www.econbiz.de/10013321271
of housework time. Consistent with both bargaining and specialization models of the family, we find that the greater the … husband's share of labor income, the lower his share of housework time; the greater the wife's market hours, the lower his … housework time, but the larger his share of housework time. Treating market work as endogenous substantially lowers the size of …
Persistent link: https://www.econbiz.de/10012773043
Studies of inequality often ignore resource allocation within the household. In doing so they miss an important element of the distribution of welfare that can vary dramatically depending on overall environmental and economic factors. Thus, measures of inequality that ignore intra household...
Persistent link: https://www.econbiz.de/10013053293
We present the results of an experiment that measures social preferences within couples in a context where intra-household pay-off inequality can be reduced at the cost of diminishing household income. We measure social norms regarding this efficiency-equality trade-off and implement a...
Persistent link: https://www.econbiz.de/10010342891