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The Distribution of Household Income in Marriage

Author

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  • Hikaru Ogawa

    (Nagoya University)

Abstract

This paper deals with three topics which have been neglected in the economics of the family literature. First, how is the distribution of household income endogenously determined within a marriage? Second, what is the desirable allocation of authority to determine the sharing rule of household income? Third, does free negotiation between wife and husband contribute to achieving a desirable outcome? We analyze these topics within a non-cooperative game model of the family where either the husband or wife decides the share of total household income for private consumption. One of our findings is that the allocation of authority can be determined by examining the relative efficiency of the partners in earning salary, and varies in a non-monotonic way.

Suggested Citation

  • Hikaru Ogawa, 2005. "The Distribution of Household Income in Marriage," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 8(3), pages 261-275, September.
    • Handle: RePEc:ozl:journl:v:8:y:2005:i:3:p:261-275
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    References listed on IDEAS

    as
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    9. Noh, Suk Jae, 1999. "A General Equilibrium Model of Two Group Conflict with Endogenous Intra-group Sharing Rules," Public Choice, Springer, vol. 98(3-4), pages 251-267, March.
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    12. 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 333-349, June.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Non-cooperative Games; Household Production and Intra-household Allocation; Fertility; Family Planning; Child Care; Children; Youth;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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