Download Bargaining over Time Allocation: Economic Modeling and by Miriam Beblo PDF

By Miriam Beblo

In this publication, time use habit inside of families is modeled because the final result of a bargaining strategy among kin who cut price over family source allocation and the intrafamily distribution of welfare. In view of traits akin to emerging lady employment besides falling fertility charges and lengthening divorce premiums, a strategic element of girl employment is analyzed in a dynamic relations bargaining framework. The department of home tasks among spouses and the saw relaxation differential among men and women are investigated inside non-cooperative bargaining settings. The types built are validated empirically utilizing information from the German Socio-Economic Panel and the German Time price range Survey.

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Additional info for Bargaining over Time Allocation: Economic Modeling and Econometric Investigation of Time Use within Families

Sample text

In equilibrium time is allocated among market work and household production according to the equality between the prevailing productivity factors . 8Z Wi and Zi (with z' = - - . ) and the marginal utility of leisure relative to that 8H' ui . - = z' = w' . U~ As in the Beckerian framework different wages for men and women lead to specialization of the partners according to their comparative advantages. The main distinction between this static bargaining model and the traditional model lies in the distribution of utility within the family.

Pierre-Andre Chiappori, Bernard Fortin and Guy Lacroix (1997) define variables that influence the decision process but that are exogenous with respect to preferences and the joint consumption set as "distribution factors". These distribution factors comprise personal income variables as well as EEPs. The authors introduce the sex ratio as a distribution factor in a parametric model of household labor supply. Since for instance a high proportion of women in the population implies a scarcity of men in the marriage market, the sex ratio is an EEP that affects spouses' opportunities outside marriage and thereby influences their bargaining positions.

Given the differing results for families with and without children with regard to the rejection of income pooling and Slutsky symmetry, it seems that the extent to which the family members' distinct incomes affect household expenditures or intrafamily time allocation depends on household composition and the stage of the life cycle. Each stage might be best characterized by a particular bargaining game between family members based on a specific set of assumptions. Which bargaining framework to choose therefore crucially depends on the kind of policy conclusion that needs to be drawn from the analysis, for instance whether one is interested in the impact of alternative child benefit systems, or whether a country's legal structure for marriage and divorce are subject to change.

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