The extent of labour specialization in the extended family: A theoretical and empirical analysis

In this paper we present a simple model of labour supply that is cast within the framework of an extended family. The model emphasizes a Ricardian division of labour whereby the specialization is solely driven by marginal productivity and value of time differentials. The empirical implications of the model are derived and tested using data that was collected in France to study the extent of trade within the family network. We find evidence that the extent of specialization is sensitive to the value of time differentials.