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Improving the modeling of couples' labour supply

Breunig, Robert; Cobb Clark, Deborah A; Gong, Xiaodong


We study the work hours of Australian couples, using a neoclassical labour-supply model in which couples choose from a small, realistic set of possible wife-husband working hour combinations. We introduce three improvements to this standard model. First, we allow partners' preferences about non-market time to be correlated. We also correct the estimates to accunt for the fact that we estimate the non-observable wage rates of individuals who do not work. Lastly, we allow each individual's...[Show more]

CollectionsANU Research Publications
Date published: 2005
Type: Working/Technical Paper


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