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Testing the validity of a single distribution factor in intrahousehold allocation models

Crawford School of Public Policy
Photo by insatiablemunch on Flickr

Event details

ACDE Seminar

Date & time

Tuesday 07 September 2021
2.00pm–3.30pm

Venue

Online via Zoom

Speaker

Toan Nguyen, University of Queensland

We propose a theoretical framework that generalises a model of Chiappori et al. (2002) to allow inter-temporal resource allocation and home production so as to examine the validity of a single distribution factor in collective household labor supply models. New testable implications of the exogeneity assumption on the intra-household allocations are derived from our model. Using data from Japan and Australia, we test those hypotheses to verify whether the local `sex ratio’ is a valid distribution factor. We find the testable implications are violated in Japan, suggesting the necessity of testing the validity of (potential) exogenous shifters for the intra-household bargaining weight.

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