This project involves the estimation of a discrete-choice family labour supply that accounts for unobserved heterogeneity and endogenous wages. It is estimated using 9 waves of the Family Resources Survey, and the specification is compatible with both the unitary and collective models of family decision making.

The model will be useful in analysing a number of issues. For instance, it will allow investigation of the role taxes and benefit changes played in the changing patterns of labour effort in the household as well as between households, and it can be used in the analysis of potential reforms to the tax and benefit system, in particular, relating to in-work benefits. It will also be used to help address the issue of "jointness creep" and to analyse the different incentives faced in benefits systems operated at the individual or family level.