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Essays on collective models with domestic production
No full textNella sua formulazione iniziale, Chiappori (1988, 1992) rappresenta la famiglia come una collettività di due individui, ognuno dei quali caratterizzato dalla propria funzione di utilità, che prendono decisioni Pareto-efficienti. L’implicazione dell’assunzione di Pareto-efficienza è analizzata in un modello d’offerta di lavoro della famiglia dove sono osservati solo il consumo totale della famiglia e le offerte di lavoro individuali. Chiappori mostra che, se le preferenze sono di tipo egoistico e non ci sono né beni pubblici né esternalità, la regola che descrive come le risorse famigliari vengono ripartite tra i coniugi può essere identificata (salvo la costante) dalla stima delle offerte di lavoro di mercato dei coniugi. Successivamente, Chiappori et al. (2002) introducono la nozione di fattori di distribuzione, cioè variabili che influenzano la ripartizione delle risorse economiche della famiglia tra i coniugi senza influenzare né il vincolo di bilancio né le preferenze, estendendo così il precedente risultato di identificazione. Il modello iniziale é stato esteso in diverse direzioni. Considero l’introduzione della produzione domestica (Apps and Rees 1997 and Chiappori 1997) e la non partecipazione al mercato del lavoro (Donni 2003 and Blundell et al. 2007).
La tesi è strutturata in tre capitoli.
Nel primo capitolo considero un modello collettivo d’offerta di lavoro con una produzione domestica commerciabile. L’obiettivo è triplice. Primo obiettivo, dimostro che in questo contesto la regola di condivisione delle risorse all’interno della famiglia può essere identificata (salvo la costante) anche se non ci sono fattori di distribuzione osservabili. Questo risultato teorico è semplice ma importante in quanto trovare dei fattori di distribuzione esogeni è un arduo compito per gli econometrici. Secondo obiettivo, il modello teorico è stimato usando i dati americani sull’uso del tempo (ATUS). Più precisamente, stimo un sistema di equazioni comprendente le offerte di lavoro domestico e di mercato dei coniugi usando i metodi SUR (Zellner, 1962) e 3SLS (Zellner and Theil, 1962), quest’ultimo per considerare l’eventuale endogeneità dei salari. Il campione è ristretto a coppie in cui entrambi i coniugi lavorano e la correzione di Heckman è applicata. Terzo obiettivo, studio le distorsioni generate dall’omissione della produzione domestica da un punto di vista empirico.
Il secondo capitolo sviluppa un modello collettivo d’offerta di lavoro con produzione domestica e non partecipazione al mercato del lavoro. Le applicazioni empiriche esistenti in letteratura che considerano la produzione domestica non prendono in considerazione anche le soluzioni d’angolo. L’obiettivo del capitolo è triplice. Primo, descrivo come il processo decisionale si può decentralizzare quando uno dei due coniugi non lavora. Se un individuo non partecipa la mercato del lavoro il salario di mercato non coincide più con il prezzo del tempo libero. Quest’ultimo è determinato endogenamente all’interno della famiglia ed è definito dal saggio marginale di sostituzione tra tempo libero e consumo calcolato nella soluzione d’angolo. Secondo, mostro che la regola di suddivisione delle risorse è identificata (salvo la costante) dalla stima delle offerte di lavoro domestico e di mercato dei coniugi. L’informazione contenuta nelle offerte di lavoro domestico consente di identificare tale regola di condivisione anche quando entrambi i coniugi non lavorano sul mercato. Inoltre, dimostro che tale risultato si ottiene anche senza fattori di distribuzione, estendendo i precedenti risultati di identificazione. Terzo, utilizzando i dati ATUS stimo, per massima verosimiglianza, un sistema di tre equazioni strutturali (lavoro domestico della famiglia, offerte di lavoro di mercato dell’uomo e della donna) considerando due diversi regimi: la donna partecipa o non partecipa al mercato del lavoro. Nel caso in cui la donna non lavora sul mercato è il prezzo endogeno del tempo libero della donna che entra nelle equazioni di offerta di lavoro domestico familiare e di mercato dell’uomo.
Il terzo capitolo sviluppa un modello collettivo di equilibrio dell’impresa familiare che considera congiuntamente non partecipazione al mercato del lavoro, produzione domestica commerciabile insieme ad una produzione domestica non commerciabile. L’idea è di fornire ai policy makers uno strumento che può essere usato per valutare l’impatto di politiche economiche e sociali sul comportamento e sul benessere individuale. L’obiettivo è triplice. Primo, descrivo la famiglia impegnata anche in una attività produttiva di un bene non commerciabile. Mentre il bene commerciabile è interamente venduto sul mercato ad un prezzo esogeno, il bene non commerciabile è interamente consumato dai membri della famiglia ed il suo prezzo è endogeno. Inoltre, come nel capitolo precedente, quando un individuo non lavora sul mercato il suo salario è determinato endogenamente e definito dalla sua produttività marginale del lavoro. Secondo, illustro come questo modello di equilibrio può essere usato al fine di valutare l’impatto di politiche sul comportamento individuale. Per fare questo, viene costruita una matrice di contabilità sociale per la famiglia agricola media italiana utilizzando i dati italiani provenienti dall’indagine ISMEA del 1995. La matrice di contabilità sociale familiare descrive i flussi economici che intervengono all’interno della famiglia e tra la famiglia ed il resto dell’economia. Gli stessi dati ISMEA sono stati usati in un precedente lavoro di Menon e Perali (2009) per stimare il modello oggetto di questo capitolo. La matrice di contabilità sociale familiare insieme ai parametri stimati da Menon e Perali (2009) sono stati usati per calibrare il modello di equilibrio che riproduce esattamente la specificazione empirica del modello econometrico. La calibrazione riguarda perciò solo un parametro delle equazioni stimate in modo da assicurare il bilanciamento della matrice di contabilità. Terzo, utilizzo il modello di programmazione per condurre simulazioni di politica economica. Le politiche simulate consistono in un aumento del prezzo del grano, un aumento del salario dell’uomo e una diminuzione del suo reddito non da lavoro. I risultati mostrano che tali politiche hanno un impatto sulle scelte di produzione, di consumo, di partecipazione al mercato del lavoro e sull’uso del tempo individuale.In his original framework, Chiappori (1988, 1992) represents the household as a collectivity consisting of two persons, each of them being characterized by a specific utility function, that make Pareto-efficient decisions. The empirical consequences of the efficiency assumption are then analyzed in a household labor supply model, in which only total consumption and individual labor supplies are observable by the outside econometricians. Chiappori shows that, if preferences are of the egoistic type and consumption is purely private, the rule that describes how household resources are shared between spouses can be identified (up to a constant) from the sole estimation of spouses' labor supply functions. Furthermore, Chiappori et al. (2002) introduce the notion of distribution factors, defined as variables that influence the sharing of resources within the household without affecting preferences or the budget constraint, and thereby complete the preceding identification result. The initial formulation of the collective model of labor supply has been extended to consider the domestic production (Apps and Rees 1997 and Chiappori 1997) and non-participation in the labor market (Donni 2003 and Blundell et al. 2007).
The PhD thesis is organized in three chapters.
In the first chapter, we consider the collective model of labor supply with (marketable) domestic production. Our objectives are threefold. Firstly, we prove a new identification result for the collective model of labor supply with marketable domestic production for the case where no distribution factor is observable. We show that, even in that case, the sharing rule can be identified (up to a constant). This theoretical result, as simple as it may be, is original and important because finding (exogenous) distribution factors is always a difficult task for the econometricians. Secondly, the theoretical model is estimated using the ATUS data the American Time Use Survey (ATUS). We estimate a complete system of market and domestic labor supply equations by the SUR (Zellner, 1962) and the 3SLS (Zellner and Theil, 1962) methods, the latter method is to account for the probable endogeneity of wage rates. The selection of working couples on which estimations are performed is modeled using the Heckman method. Thirdly, we study the distortions generated by the omission of domestic production from an empirical perspective. Our results connect the discrepancies that may exist between the structural estimates of the collective models with and without household production to the properties of the domestic labor supply functions.
The second chapter develops a theoretical model of labor supply with domestic production that is consistent with corner solutions. The empirical applications of collective models accounting for household production do not incorporate corner solutions. The exploited sample is restricted to the sole working couples, and the sample selection is taken into account or not. The aim of this paper is to model the decision to participate in the labor market in a collective framework with domestic production. Our results are threefold. Firstly, we describe how the decision process can be decentralized when one spouse or both spouses do not work. In the case where one spouse does not participate in the labor market, her market wage does no longer coincide with the price of leisure. For non-working spouse, the price of leisure is endogenously determined within the household and it is defined by the marginal rate of substitution between leisure and consumption computed at the corner point. Secondly, we prove that the sharing rule can be identified (up to a constant) from the observation of domestic and market labor supply functions. The information contained in domestic labor supply functions allows identifying the sharing rule even when both spouse does not work in the market. We also demonstrate that these results can be obtained without distribution factors, thereby generalizing the initial results of Apps and Rees (1997) and Chiappori(1997). Thirdly, we estimate, using the American Time Use Survey (ATUS) data, a collective model of labor supply accounting both for domestic production and for female non-participation. We estimate, by maximum likelihood, a system of three structural equations (family domestic labor supply, and husband and wife market labor supplies), considering two different regimes, that is the wife participate or not participate to the labor market. The wife's labor force participation is based on whether her desired hours of work are greater or less than zero. In the non participation case, the wife's wage, entering in the family domestic labor supply and in the husband market labor supply, is replaced by her price of leisure.
The third chapter develops an equilibrium model for the household that accounts for a marketable household production, a non-marketable domestic production and non-participation in the labor market. The aim of this chapter is to provide analysts and policy makers with an instrument that can be useful to evaluate the impact of social and economic policies on individual behavior and welfare. Our objectives are threefold.
Firstly, we describe the household as engaged both in a marketable and in a non-marketable domestic production. We allow also for non-participation in the labor market. The marketable produced good is entirely sold in the market at an exogenous price. The non-marketable produced good is entirely consumed by the household members and its price is endogenously determined within the household. When the household members do not participate in the labor market all their time-uses are evaluated at an implicit wage defined by the individual's marginal labor productivity. Secondly, we illustrate how the equilibrium model of the household can be used by policy makers to evaluate the impact of policies on individual behavior and welfare. In doing so, a social accounting matrix of the average Italian farm-household economy is developed using Italian ISMEA data. The household social accounting matrix describes the flows of all economics transactions that take place within the household economy. ISMEA data were also used by Menon and Perali (2009) to estimate the model presented in this chapter. The HSAM together with the production and consumption parameters estimated in Menon and Perali are used to calibrate the equilibrium model that reproduces the structural specification of the econometric model. The need for calibration is reduced to a minimum limited to the calibration of the intercepts of demand and production shares to match the levels of the HSAM. Thirdly, we use the programming model to perform simulations and policy experiments and predict the impact of changes in exogenous variables on production, consumption and labor supply decisions. Policies analyzed are the impact of an increase of the price of a crop, a decrease in the husband’s non-labor income and the increase in the husband’s market wage. These policies are shown to have an impact on the inputs needed in the agricultural production process, the outputs of the agricultural production process and individual time use and consumption of the household members
From the glass door to the glass ceiling: An analysis of the gender wage gap by age groups
No full textUsing 2009 EU-SILC data for France, Italy, the Netherlands and the United Kingdom, we decompose the gender wage gap for prime age workers. We adopt an age group approach to identify when and how the glass door and the glass ceiling effects arise and their persistency over time. The empirical results verify that the raw gender wage gap increases with age. In all considered countries, the glass ceiling effect is completely realized by the age of 30 and increases over time. French, Italian and British women have also to cope with the glass door as they enter the labor market
The Collective Farm-household Model: Policy and Welfare Simulations
No full textThis study develops a household enterprise model extended to encom- pass recent advances in collective theory. We use a simulation model in which production and consumption-leisure choices are represented along with the rule governing intra-household resource allocation, to analyze the income and wage re- sponses of each family member. The household is treated as an equilibrium model whose accounts are based on a collective household accounting matrix, with the so- cial dimension being the wife/husband classes. The simulation analysis illustrates the policy relevance of the collective approach to household behavior for inferring the impact of economic policies on individual behavior and welfare. We also propose insightful comparisons with the unitary model to make the behavioral and welfare policy relevance of the collective approach evident
The influence of parental employment status on children's labor outcomes. Does the gender of parents and children matter?
No full textThis paper investigates the influence of parental employment status during adolescence on adult children’s labour outcomes across European country groups, according to the gender of both parents and children. Our aim is to examine whether this influence is stronger within mother–daughter and father–son relationships or whether mothers play a role also for the employment outcomes of their sons and fathers for their daughters. Using EU-Silc data, we estimate the extent to which parents’ employment during children’s adolescence affects their employment status at around 30 years of age. Empirical findings show that having had a working mother reduces the likelihood of being NEET for both sons and daughters in all country groups, except in Nordic countries, with effects of similar magnitude. The effects of fathers’ working condition are less widespread across countries. Where present, the influence of paternal employment on daughters’ outcomes is much smaller than on sons’ outcomes. From a policy perspective, in almost all countries, fostering mothers’ employment, not only when children are young but also during their adolescence, might have important consequences for both their sons’ and daughters’ future employment prospects
An Equilibrium Analysis of a Collective Farm-Household Model: Policy and Welfare Simulations
No full textImportance of Life Domains: A Compositional Analysis
No full textThis study analyses how individuals allocate priorities across different life domains, focusing on the influence of cohort, gender, and personality traits. The compositional analysis approach represents the innovative contribution to understanding the importance assigned to different life domains, i.e. career, leisure, friendship, and family, across three cohorts of individuals born in 1971-1973, 1981-1983, and 1991-1993, observed at ages 25-27 and 35-37. Our findings reveal a significant shift in priorities across cohorts. At ages 25-27, compared to the 1981-1983 cohort, individuals born in 1991-1993 place significantly less importance on family, instead prioritizing career, friendships, and, most notably, leisure time. Gender differences persist, with women continuing to prioritize family and friendships over work and career. Additionally, personality traits play a role. Conscientious individuals are more likely to prioritize their careers, while those with higher agreeableness place greater emphasis on family
The quality of employment in the early labour market experience of young Europeans
No full textThis paper presents a new approach to evaluating individuals' employment quality, considering the evolution of individuals' employment conditions over a period of time, instead of the quality of jobs held at a point in time. In particular, we present a new definition of employment quality, based on four dimensions: employment security, income security, income success and occupational success. Using EU-SILC data, we analyse the early labour market experience of young adults and the extent to which the achievement of employment quality around five years after leaving education varies according to gender, education and labour market institutions. Our findings suggest that there is still a pressing need to enhance women's chances of remaining continuously in employment and to move up in the labour income distribution. Stricter rules on the use of temporary contracts appear to improve youth employment prospects in general, whereas a more stringent regulation of individual dismissals seems to generate some difficulties for high-school and university graduates
Gender inequalities in the initial labour market experience of young Europeans
No full textPurpose The purpose of this paper is to investigate gender differences in employment status trajectories of young Europeans during their initial labour market experience, and the way in which they are affected by some labour market institutions.Design/methodology/approach The empirical analysis is based on EU-SILC longitudinal data (waves 2006-2012), and focusses on young people aged 16-34. Monthly information on self-declared employment statuses for 36 months is used to define employment status trajectories. Young people are observed in two different phases: the first three years after leaving education (first phase) and a three-year window, starting around four years after the end of education (2nd phase). Multinomial logit models are used to estimate the probability of following different trajectory types as a function of individual characteristics, macroeconomic conditions and institutional indicators.Findings Results show that, in the first phase, women and men face on average the same difficulties in entering the labour market. When controlling for the presence of children, non-mothers have higher chances than men to enter rapidly and successfully into the labour market, whereas young mothers have the same chances. In contrast, in the second phase women experience more fragmented pathways than men, even if they do not have children. A less stringent regulation on dismissals of employees with regular contracts could enhance women's employment opportunities in the school-to-work transition, but it would have detrimental effects for both men and women in the subsequent years. On the contrary, a more stringent regulation on the use of temporary contracts would have beneficial effects for women, with no adverse effects for men.Originality/value The paper contributes to the literature in several ways. First, it takes a broader perspective on youth labour market integration by considering two phases of individuals' initial working life. Second, it combines an explicit attention to the first significant employment experience with a focus on individual trajectories, by adopting a new method to group trajectories. Third, it shows how the effects of labour market institutions vary by gender, highlighting the importance of considering gender-specific consequences when discussing or adopting labour market reforms
Workless mothers and workless fathers. An analysis of the intergenerational legacy in Europe.
No full textThis paper examines how the intergenerational transmission of worklessness varies according to the gender of parents and the gender of their children, across different groups of European countries. In particular, it aims at disentangling the relative role of mothers and fathers in influencing the risk of not being successfully employed for their sons and daughters (in the early stage of their working life), and at assessing the extent to which these effects are mediated by education and other individual characteristics. To this end, we use a sample of men and women aged 25-34 from the EU-SILC cross-sectional data (2011), and information about the working condition of their parents when young adults were aged about 14. We show that fathers and mothers play different roles in different country groups. Fathers‟ effect is generally mediated by education and other individual characteristics (with only few exceptions), whereas mothers play a role also after controlling for individual characteristics, particularly for their daughters. Our results call for new policy initiatives to improve labour market efficiency and reduce the inequalities linked to paternal (and maternal) employment in Mediterranean (and CEE) countries
On the Importance of Household Production in Collective Models: Evidence from U.S. Data
No full textThe present paper develops a collective model of labor supply with domestic production. It is shown that the structural components of the model can be identified without using a distribution factor, thereby generalizing the initial results of Apps and Rees [1997] and Chiappori [1997]. The theoretical model is then estimated using the ATUS data. The empirical results are compared to those obtained from a similar model without domestic production
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