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Tests of Income Pooling in Household Decisions

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Author Info
Orazio Attanasio (University College London)
Valérie Lechene (Wadham College)

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Abstract

Using the Progresa data from Mexico, we investigate intrahousehold decision making using a variety of outcomes. We exploit both the experimental nature and the (short) panel dimension of the data to measure the impact of exogenous changes in the intrahousehold distribution of resources on household decisions. We test for global pooling of resources within households, which would correspond to the unitary model of household decision making. We also exploit a set of questions about power and the decision making process in the household to investigate aspects of strategic interactions between household members. Our findings confirm previous rejections of income pooling. We also cannot reject that the wife's relative income share is a significant determinant of the wife's decision making power in the household, with a higher share of income associated with more decision making power. (Copyright: Elsevier)

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File URL: http://dx.doi.org/10.1006/redy.2002.0191
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Publisher Info
Article provided by Elsevier for the Society for Economic Dynamics in its journal Review of Economic Dynamics.

Volume (Year): 5 (2002)
Issue (Month): 4 (October)
Pages: 720-748
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Handle: RePEc:red:issued:v:5:y:2002:i:4:p:720-748

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Find related papers by JEL classification:
J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household

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  1. Thomas, D., 1989. "Intra-Household Resource Allocation: An Inferential Approach," Papers 586, Yale - Economic Growth Center.
  2. Browning, M. & Bourguignon, F. & Chiappori, P.A. & Lechene, V., 1992. "Incomes and Outcomes: A structural Model of Intra-Household Allocation," DELTA Working Papers 92-23, DELTA (Ecole normale supérieure).
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  3. Lundberg, S.J. & Pollak, R.A. & Wales, T.J., 1994. "Do Husbands and Wives Pool Their Resources? Evidence from U.K. Child Benefit," Discussion Papers in Economics at the University of Washington 94-6, Department of Economics at the University of Washington.
    Other versions:
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

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  2. Manuela Angelucci & Giacomo DeGiorgi & Marcos A. Rangel & Imran Rasul, 2009. "Family Networks and School Enrolment: Evidence from a Randomized Social Experiment," NBER Working Papers 14949, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  4. Olivier Bargain & Miriam Beblo & Denis Beninger & Richard Blundell & Raquel Carrasco & Maria-Concetta Chiuri & François Laisney & Valérie Lechene & Nicolas Moreau & Michal Myck & Javier Ruiz-Castill, 2006. "Does the Representation of Household Behavior Matter for Welfare Analysis of Tax-benefit Policies? An Introduction," Review of Economics of the Household, Springer, vol. 4(2), pages 99-111, 06. [Downloadable!] (restricted)
  5. Luis E. Arango & Carlos E. Posada, 2005. "Labour participation in Colombia," Applied Economics, Taylor and Francis Journals, vol. 37(16), pages 1829-1838, September. [Downloadable!] (restricted)
  6. Melanie Lührmann & Jürgen Maurer, 2008. "Who wears the trousers? A semiparametric analysis of decision power in couples," MEA discussion paper series 08168, Mannheim Research Institute for the Economics of Aging (MEA), University of Mannheim. [Downloadable!]
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  7. Xu, Zeyu, 2007. "A survey on intra-household models and evidence," MPRA Paper 3763, University Library of Munich, Germany. [Downloadable!]
  8. Cesar Martinelli & Susan W. Parker, 2003. "Do School Subsidies Promote Human Capital Accumulation among the Poor?," Working Papers 0306, Centro de Investigacion Economica, ITAM. [Downloadable!]
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  9. Stöwhase, Sven, 2009. "Pareto-Inefficiencies in Intrahousehold-Decision-Making: Empirical evidence from Germany," MPRA Paper 13131, University Library of Munich, Germany. [Downloadable!]
  10. Eriksson, Rickard, 2008. "Is women's non-market time more valuable than men's?," Working Paper Series 2/2008, Swedish Institute for Social Research. [Downloadable!]
  11. Aguero, Jorge, 2003. "Are Intra-Household Allocations Efficient?," 2003 Annual meeting, July 27-30, Montreal, Canada 22061, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  12. Lee, Jungmin, 2004. "Observable and Unobservable Household Sharing Rules: Evidence from Young Couples' Pocket Money," IZA Discussion Papers 1250, Institute for the Study of Labor (IZA). [Downloadable!]
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