A Collective Household Labour Supply Model with Disability: Evidence from Iraq

Abstract

In this study we explored the determinants of the women's labour supply and we attempted to identify the sharing rules for married couples. The analysis relied on data derived by the Iraqi Household SocioEconomic Survey (IHSES) in 2012-2013. The study considered the housework contributed by both spouses and we also included the wife's disability status as a distribution factor. Moreover, we estimated the sharing rules accounting for female non-participation in the labour market. The household collective model was preferred over the unitary model as the results supported that changes on wages, non-labour income, age, education, number of children, and disability as a distribution factor affect the bargaining power and the share of spouses. The findings showed that for a one percent increase on female's daily wage rate, her share on full income was increased by 1320 Iraqi Dinar (ID) corresponding to $1.12, while reached 1470 ID ($1.25) when the domestic labour was considered. Similarly, increases on the male's wage increased her share by 630 ID ($0.50), while increases of 1 ID in the non-labour income increased female's share by 0.43. The estimates showed that the disabled women decreased the share by 1275 ID ($1.08). Furthermore, the findings illustrated that considering the non-participation of the wife in the labour market, her share and therefore her bargaining power was lower than their earner counterparts.

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