In this paper, we analyze the nature of intra-household allocations and commitment using unique panel data on individual-specific within-household consumption expenditures and on time used for leisure, market production and home production. Specifically we estimate a dynamic collective model of...

I develop and estimate a model of the labor market in which precautionary savings interacts with labour market frictions to produce substantial inequality in wealth among ex ante identical workers. I show that a model of on-the-job search,in which workers are risk averse and markets are...