Estimation of a Collective Model of Labour Supply with Taxation

Chiappori, Fortin and Lacroix [2001] estimate a model of collective labor supply on US data. We adopt the same empirical specification and investigate household labor supply in France. We account for the non-linearity of the budget set. We note that the data validate only partially the restrictions generated by the collective rationality. However, we observe that, when the wife's threat of divorce is more credible, she receives a larger share of the resources.