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Economic and Social Status in Household Decision-making: Evidence Relating to Extended Family Mobility

Author

Listed:
  • Chin-Oh Chang

    (Department of Land Economics, National Chengchi University, Taipei, Taiwan, jachang@nccu.edu.tw)

  • Shu-Mei Chen

    (Department of Real Estate Management, Kun Shan University of Technology, Tainan, Taiwan, mayc2110@ms24.hinet.net)

  • Tsur Somerville

    (Faculty of Commerce, University of British Columbia, 2053 Main Mall, Vancouver, BC, V6T IZ2, Canada, tsur.somerville@commerce.ubc.ca)

Abstract

Models of the allocation of household resources use as a decision rule either the maximisation of a household utility function or the solution to a Nash-bargaining game. The literature on residential mobility has exclusively used the former to analyse the household's decision to change location. This is despite the strong empirical evidence that allocations in other areas are more consistent with the bargaining model. In this paper micro-data from Taipei, Taiwan, are used to determine which approach is most appropriate for studying housing mobility decisions. The mobility decisions of nuclear and different types of extended family household are compared to test whether the social and economic roles of different generations affect the household decision process, as is consistent with the bargaining approach. Thus, household mobility is analysed with a richer description of household structure than is found in the current literature, which implicitly treats households as either a nuclear family or some smaller unit. The results support the bargaining model of household decision-making. Conditional probabilities differ between nuclear and extended families, when a member of the eldest generation in an extended household is the household head, and when a member of the eldest generation contributes to household earnings. Of these, it is found that economic status is paramount to social status.

Suggested Citation

  • Chin-Oh Chang & Shu-Mei Chen & Tsur Somerville, 2003. "Economic and Social Status in Household Decision-making: Evidence Relating to Extended Family Mobility," Urban Studies, Urban Studies Journal Limited, vol. 40(4), pages 733-746, April.
    • Handle: RePEc:sae:urbstu:v:40:y:2003:i:4:p:733-746
    DOI: 10.1080/0042098032000065272
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    References listed on IDEAS

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    Cited by:

    1. Na Ta & Zhilin Liu & Yanwei Chai, 2019. "Help whom and help what? Intergenerational co-residence and the gender differences in time use among dual-earner households in Beijing, China," Urban Studies, Urban Studies Journal Limited, vol. 56(10), pages 2058-2074, August.
    2. Kun-Kuang Wu & Chun-Chang Lee & Chih-Min Liang & Wen-Chih Yeh & Zheng Yu, 2020. "Exploring the Factors Influencing Kaohsiung Residents’ Intentions to Choose Age-Friendly Housing," IJERPH, MDPI, vol. 17(21), pages 1-21, October.
    3. Orhan SANLI & Osman PEKER, 2023. "Effect of Inflation, Exchange Rate, Interest Rates and Income on House Sales: a Case of Turkiye," Journal of Economic Policy Researches, Istanbul University, Faculty of Economics, vol. 10(1), pages 37-60, January.
    4. Chin-Oh Chang & Shu-Mei Chen, 2018. "Dilemma of Housing Demand in Taiwan," International Real Estate Review, Global Social Science Institute, vol. 21(3), pages 397-418.
    5. repec:ire:issued:v:21:n:03:2018:p:389-418 is not listed on IDEAS

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