Document Type : Research Paper
Author
Assistant Professor, Institute of Economics, Institute of Humanities and Cultural Studies, Tehran, Iran
Abstract
The Collective Model (CM) of household market labor supply is considered one of the recent study areas of household economics in the field of explaining married people's market labor behavior.The main aim of the study is to investigate the effect of two variables "difference in spouses' education (in favor of the husband)" and "husband's share to the total household income" on working hours of working married people based on collective model (CM) literature in 800 Iranian households.The estimation method has been done using Generalized Method of Moments (GMM) and with relevant econometrics’ considerations.
The results of the study based on individual and family information of the sample show that urban married people have more working hours. With the increase in age, the market working hours of married people decreased, and having a high school graduation and higher education is associated with an increase in the market working hours of married men and a decrease in the market working hours of married women. Wage elasticity in the supply function of married men's hours of work is reported to be positive and the shape of the function is standard. The wage elasticity of married women is negative and high and indicates the dominance of the income effect over substitution in the labor supply function.
The results of the analysis of the two selected variables of the distribution factor in the collective model (CM) show that the variable "difference in the education of the couple (in favor of the husband)" has a negative and significant relationship with the market working hours of married men and does not show a significant relationship with the market working hours of married women.
Also, the variable relationship of "husband's share of the total household income" with the working hours of married men is positive and with the working hours of married women is negative and significant, and therefore, in the studied sample, the working behavior of married workers is not consistent with the theoretical literature of collective model (CM).
Based on this, it is still necessary to pay attention to the assumption of the function of common preferences of couples in the Iranian household, and it is recommended that any policy of paying to the household (subsidies) and receiving from the household (taxes) should be established and be executed based on the identification of the target households and not the working people in the household.
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