Leadership

Estimation Of Alternative Models Of Female Labour Supply With Fixed Travel Costs

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Executive Summary

The authors formalize the joint choice of labor force participation and mode of travel to work together with the hours of work decision for unitary and collective households. Conditioning on the primary workers decisions, they analyze the decisions of the secondary worker in a simplified setting in which the amount of work travel is independent of hours of work. On a matched sample from the BHPS and the NTS they find that car ownership is important in modal choice but the correlation between modal choice and the participation decision is negligible. They find that households behave somewhere between unitary and collective households in partially pooling groups of individual expenditure or income items.

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