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Pooling of Income and Sharing of Consumption within Households

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Author Info
Jens Bonke (Rockwool Foundation Research Unit, Copenhagen)
Martin Browning (Department of Economics, University of Oxford)

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Abstract

There are extensive literatures within economics and economic psychology on the allocation of household income within the household. These two literatures are largely disjoint but both use a concept of ‘income pooling’. In economics this refers to the independence of household decisions from who receives the income within the household. In economic psychology it refers to the management of household finances. This article uses a new Danish expenditure survey that gives information on both concepts and on the assignment of expenditures to consider the link between the two. More importantly, we investigate whether either type of pooling is related to the sharing of expenditures between the two partners. We find that sharing does depend on who receives the income within non-pooling households, but not on the economic psychological income pooling regime per se.

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Publisher Info
Paper provided by University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics in its series CAM Working Papers with number 2009-09.

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Length: 13 pages
Date of creation: Apr 2009
Date of revision:
Handle: RePEc:kud:kuieca:2009_09

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Related research
Keywords: household production and intra-household allocation; personal income; wealth and their distributions; methodology for collecting; estimating; and organizing microeconomic data; marriage and family;

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Find related papers by JEL classification:
D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Microeconomic Data

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References listed on IDEAS
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  1. Ashby, Katherine J. & Burgoyne, Carole B., 2008. "Separate financial entities?: Beyond categories of money management," The Journal of Socio-Economics, Elsevier, vol. 37(2), pages 458-480, April. [Downloadable!] (restricted)
  2. Browning, Martin & Francois Bourguignon & Pierre-Andre Chiappori & Valerie Lechene, 1994. "Income and Outcomes: A Structural Model of Intrahousehold Allocation," Journal of Political Economy, University of Chicago Press, vol. 102(6), pages 1067-96, December. [Downloadable!] (restricted)
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  3. Phipps, Shelley & Woolley, Frances, 2008. "Control over money and the savings decisions of Canadian households," The Journal of Socio-Economics, Elsevier, vol. 37(2), pages 592-611, April. [Downloadable!] (restricted)
  4. Phipps, Shelley A & Burton, Peter S, 1998. "What's Mine Is Yours? The Influence of Male and Female Incomes on Patterns of Household Expenditure," Economica, London School of Economics and Political Science, vol. 65(260), pages 599-613, November. [Downloadable!] (restricted)
  5. Manser, Marilyn & Brown, Murray, 1980. "Marriage and Household Decision-Making: A Bargaining Analysis," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 21(1), pages 31-44, February. [Downloadable!] (restricted)
  6. McElroy, Marjorie B & Horney, Mary Jean, 1981. "Nash-Bargained Household Decisions: Toward a Generalization of the Theory of Demand," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 22(2), pages 333-49, June. [Downloadable!] (restricted)
  7. Burgoyne, Carole B. & Reibstein, Janet & Edmunds, Anne & Dolman, Valda, 2007. "Money management systems in early marriage: Factors influencing change and stability," Journal of Economic Psychology, Elsevier, vol. 28(2), pages 214-228, April. [Downloadable!] (restricted)
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This page was last updated on 2009-11-2.

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