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An Empirical Method for a Model of Self‐Employed Households
Author(s) -
Sonoda Tadashi
Publication year - 2002
Publication title -
family and consumer sciences research journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.372
H-Index - 31
eISSN - 1552-3934
pISSN - 1077-727X
DOI - 10.1177/1077727x02030004006
Subject(s) - salary , wage , economics , work (physics) , elasticity (physics) , labour economics , wage rate , self employed , price elasticity of demand , econometrics , microeconomics , engineering , mechanical engineering , materials science , market economy , composite material
This article presents an empirical method for a simple model of self‐employed households. In this model, the “internal wage” plays a crucial role of equilibrating the demand and supply of family labor within the household. By paying special attention to this wage, all structural parameters of the model can be estimated and are used to verify the seemingly anomalous characteristics of self‐ employed households: They earn less (per hour or week) and work longer than salary and wage workers and their own price elasticity of output supply is small or negative.