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The Impact of a Permanent Income Shock on the Situation of Women in the Household: the case of a pension reform in Argentina

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  • Machado, Matilde
  • de la Mata, Dolores
  • Berniell, Inés

Abstract

Transfers to women may affect their bargaining power within the household and consequently their well-being. We analyze the effects of a pension reform in Argentina that resulted in an unexpected and substantial increase in permanent income for around 1.8 million senior women (women 60 years and over), on outcomes arguably related to women?s bargaining power within the household. Our results imply that a 10 percentage-point increase in senior women?s income share within the couple leads to a statistically significant decrease of 10% in the probability that they are the only person in charge of household chores and to a significant increase of 11% in their husbands? participation in household chores. Moreover, this large income shock significantly increased the probability of divorce/separation among senior women by 19%. Our results show that (permanent) transfers to senior women can have substantial effects on their situation in the household.

Suggested Citation

  • Machado, Matilde & de la Mata, Dolores & Berniell, Inés, 2014. "The Impact of a Permanent Income Shock on the Situation of Women in the Household: the case of a pension reform in Argentina," CEPR Discussion Papers 10256, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:10256
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    3. Max Groneck & Johanna Wallenius, 2021. "It Sucks to Be Single! Marital Status and Redistribution of Social Security [Female labor supply as insurance against idiosyncratic risk]," The Economic Journal, Royal Economic Society, vol. 131(633), pages 327-371.
    4. Cecilia Parada, 2023. "Cash Transfers and Intra-Household Decision-Making in Uruguay," Journal of Family and Economic Issues, Springer, vol. 44(3), pages 757-775, September.
    5. Cecilia Parada, 2018. "Income cash transfers and intrahousehold decision making," Documentos de Trabajo (working papers) 18-17, Instituto de Economía - IECON.
    6. Fernandes, Inês & Schmidt, Tobias, 2021. "Household bargaining, pension contributions and retirement expectations: Evidence from the German Panel on Household Finances," Discussion Papers 44/2021, Deutsche Bundesbank.
    7. Padilla-Romo, María & Peluffo, Cecilia & Viollaz, Mariana, 2022. "Parents' Effective Time Endowment and Divorce: Evidence from Extended School Days," IZA Discussion Papers 15304, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    Intra-household bargaining power; Marital disruption; Divorce; Non-contributory pensions; Pensions; Public transfers; Household chores; Collective models; Senior women; Permanent income shock;
    All these keywords.

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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