TY  - RPRT
        AU  - Haan, Peter
AU  - Myck, Michal
        TI  - Multi-Family Households in a Labour Supply Model: A Calibration Method with Application to Poland
        PY  - 2008/Jul/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 3611
        UR  - https://www.iza.org/publications/dp3611
        AB  - The collective model of labour supply opened the household “black box” and allowed for individual treatment of partners in couples. However, the literature on labour supply has so far largely ignored a broader issue with special relevance to transition and developing countries – the distinction of single versus multi-family (“complex”) households. We propose a method to account for multi-family household structure by borrowing from recent applications of the collective model and combining estimation and calibration to identify the degree of resource sharing. We assume that each household is characterised by a between-family sharing parameter, which is calibrated on estimated preferences, the observed labour market status and other characteristics. The key identifying assumption is that preferences over income and leisure of specific family types living in single and multi-family households are the same conditional on observable characteristics. We apply the method to Polish labour market data.
        KW  - work incentives
KW  - within-household sharing
KW  - labour supply
KW  - transition
        ER  -