systematically describe the empirical evidence for/against employing unitary household models to understand households in developing countries

Expert Solution

Chiappori (1988) proposed a household collective model, where the decisions and choices of individuals depend also on the prefrence, choices and characteristics of remained household members.

for this study, the iraq household socio-economic survey (IHSES) that took place in Iraq during the period 2012-13 is used and its results are:

regarding the number of children both men and women are more likely to reduce the labour supply for children which may be associated with the fact that the spouses devote more time for their caring and less time on labour market.
regarding the disability the result shows that non disabled man have no effect on female's labour market supply, while the non disabled women are more likely to work more hours per day than disabled woman.

Implication:

The income share is an important distribution factor, because policy can alter this variable.
individual prefrences over private and public consumption is crucial for the purposes of analysing the welfare of

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