IDEAS home Printed from https://ideas.repec.org/p/hal/wpaper/halshs-00590395.html
   My bibliography  Save this paper

Strategic weight within couples: a microsimulation approach

Author

Listed:
  • Kristian Orsini

    (CES - Center for Economic Studies - UCL - Université Catholique de Louvain = Catholic University of Louvain)

  • Amadéo Spadaro

    (PJSE - Paris-Jourdan Sciences Economiques - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, FEDEA - Fundacion de estudios de economia aplicada - FEDEA, UIB - Universitat de les Illes Balears = Universidad de las Islas Baleares = University of the Balearic Islands)

Abstract

Individual strategic weight plays an important role in the intra-household allocation of resources; however, empirical studies invariably find such weight difficult to define in a plausible and computable way, given the available data. This paper proposes a framework for the calculation of household members' strategic weight that can be easily computed using a microsimulation model. The index proposed for each member as the share of resources the household would lose should he or she abandon it. The causes of strategic weight differentials are analysed in four EU countries with significantly different employment structure and tax-benefit systems (Finland, Germany, Italy and the United Kingdom), using EUROMOD, an integrated EU-15 microsimulation model.

Suggested Citation

  • Kristian Orsini & Amadéo Spadaro, 2006. "Strategic weight within couples: a microsimulation approach," Working Papers halshs-00590395, HAL.
    • Handle: RePEc:hal:wpaper:halshs-00590395
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00590395
    as

    Download full text from publisher

    File URL: https://shs.hal.science/halshs-00590395/document
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. François Bourguignon & Amedeo Spadaro, 2006. "Microsimulation as a tool for evaluating redistribution policies," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 4(1), pages 77-106, April.
    2. Alderman, Harold, et al, 1995. "Unitary versus Collective Models of the Household: Is It Time to Shift the Burden of Proof?," The World Bank Research Observer, World Bank, vol. 10(1), pages 1-19, February.
    3. Duncan Thomas, 1990. "Intra-Household Resource Allocation: An Inferential Approach," Journal of Human Resources, University of Wisconsin Press, vol. 25(4), pages 635-664.
    4. Laisney, François & Beninger, Denis & Beblo, Miriam, 2003. "Family Tax Splitting: A Microsimulation of its Potential Labour Supply and Intra-household Welfare Effects in Germany," ZEW Discussion Papers 03-32, ZEW - Leibniz Centre for European Economic Research.
    5. Richard Blundell & Costas Meghir, 1986. "Selection criteria for a microeconometric model of labour supply," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 1(1), pages 55-80, January.
    6. Grossbard-Shechtman, Shoshana Amyra, 1984. "A Theory of Allocation of Time in Markets for Labour and Marriage," Economic Journal, Royal Economic Society, vol. 94(376), pages 863-882, December.
    7. Chiappori, Pierre-Andre, 1988. "Rational Household Labor Supply," Econometrica, Econometric Society, vol. 56(1), pages 63-90, January.
    8. Kanbur, Ravi & Haddad, Lawrence, 1994. "Are Better Off Households More Unequal or Less Unequal?," Oxford Economic Papers, Oxford University Press, vol. 46(3), pages 445-458, July.
    9. Chen, Zhiqi & Woolley, Frances, 2001. "A Cournot-Nash Model of Family Decision Making," Economic Journal, Royal Economic Society, vol. 111(474), pages 722-748, October.
    10. Frederic Vermeulen, 2002. "Collective Household Models: Principles and Main Results," Journal of Economic Surveys, Wiley Blackwell, vol. 16(4), pages 533-564, September.
    11. Chiappori, Pierre-Andre, 1992. "Collective Labor Supply and Welfare," Journal of Political Economy, University of Chicago Press, vol. 100(3), pages 437-467, June.
    12. Mercedes Sastre & Alain Trannoy, 2002. "Shapley inequality decomposition by factor components: Some methodological issues," Journal of Economics, Springer, vol. 77(1), pages 51-89, December.
    13. Bourguignon, Francois & Chiappori, Pierre-Andre, 1992. "Collective models of household behavior : An introduction," European Economic Review, Elsevier, vol. 36(2-3), pages 355-364, April.
    14. Richard Blundell & Ian Walker, 1986. "A Life-Cycle Consistent Empirical Model of Family Labour Supply Using Cross-Section Data," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 53(4), pages 539-558.
    15. Blundell, Richard, 1988. "Consumer Behaviour: Theory and Empirical Evidence--a Survey," Economic Journal, Royal Economic Society, vol. 98(389), pages 16-65, March.
    16. Paul A. Samuelson, 1956. "Social Indifference Curves," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 1-22.
    17. Grossbard-Shechtman, Shoshana Amyra & Neuman, Shoshana, 1988. "Women's Labor Supply and Marital Choice," Journal of Political Economy, University of Chicago Press, vol. 96(6), pages 1294-1302, December.
    18. 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.
    19. Fortin, Bernard & Lacroix, Guy, 1997. "A Test of the Unitary and Collective Models of Household Labour Supply," Economic Journal, Royal Economic Society, vol. 107(443), pages 933-955, July.
    20. Lundberg, Shelly & Pollak, Robert A, 1993. "Separate Spheres Bargaining and the Marriage Market," Journal of Political Economy, University of Chicago Press, vol. 101(6), pages 988-1010, December.
    21. repec:bla:jecsur:v:16:y:2002:i:4:p:533-64 is not listed on IDEAS
    22. Sutherland, Holly, 2001. "EUROMOD: an integrated European benefit-tax model: final report," EUROMOD Working Papers EM9/01, EUROMOD at the Institute for Social and Economic Research.
    23. Becker, Gary S, 1974. "A Theory of Marriage: Part II," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages 11-26, Part II, .
    24. Gary S. Becker, 1974. "A Theory of Marriage," NBER Chapters, in: Economics of the Family: Marriage, Children, and Human Capital, pages 299-351, National Bureau of Economic Research, Inc.
    25. Jane H. Leuthold, 1968. "An Empirical Study of Formula Income Transfers and the Work Decision of the Poor," Journal of Human Resources, University of Wisconsin Press, vol. 3(3), pages 312-323.
    26. T. Paul Schultz, 1990. "Testing the Neoclassical Model of Family Labor Supply and Fertility," Journal of Human Resources, University of Wisconsin Press, vol. 25(4), pages 599-634.
    27. 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.
    28. Shelley A. Phipps & Peter S. Burton, 1996. "Collective Models of Family Behaviour: Implications for Economic Policy," Canadian Public Policy, University of Toronto Press, vol. 22(2), pages 129-143, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Olivier Bargain & Miriam Beblo & Denis Beninger & Richard Blundell & Raquel Carrasco & Maria-Concetta Chiuri & François Laisney & Valérie Lechene & Nicolas Moreau & Michal Myck & Javier Ruiz-Castillo , 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, June.
    2. Patricia Apps & Ray Rees, 2007. "Household Models: An Historical Perspective," CESifo Working Paper Series 2172, CESifo.
    3. Chiappori, Pierre-André & Donni, Olivier, 2009. "Non-unitary Models of Household Behavior: A Survey of the Literature," IZA Discussion Papers 4603, Institute of Labor Economics (IZA).
    4. Kato, Hironori & Matsumoto, Manabu, 2009. "Intra-household interaction in a nuclear family: A utility-maximizing approach," Transportation Research Part B: Methodological, Elsevier, vol. 43(2), pages 191-203, February.
    5. Kristian Orsini & Amadéo Spadaro, 2005. "Sharing resources within the household: a multi-country microsimulation analysis of the determinants of intrahousehold "strategic weight" differentials and their distributional outcomes," Working Papers halshs-00590860, HAL.
    6. Laurens CHERCHYE & Thomas DEMUYNCK & Bram DE ROCK, 2010. "Noncooperative household consumption with caring," Working Papers of Department of Economics, Leuven ces10.34, KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven.
    7. Orsini, Kristian & Spadaro, A., 2005. "Sharing resources within the household: a multi-country microsimulation analysis of the determinants of intrahousehold ‘strategic weight’ differentials and their distributional outcomes," EUROMOD Working Papers EM3/05, EUROMOD at the Institute for Social and Economic Research.
    8. Chiappori, Pierre-André & Donni, Olivier, 2006. "Les modèles non unitaires de comportement du ménage : un survol de la littérature," L'Actualité Economique, Société Canadienne de Science Economique, vol. 82(1), pages 9-52, mars-juin.
    9. Rubalcava, L. & Thomas, D., 2000. "Family Bargaining and Welfare," Papers 00-10, RAND - Labor and Population Program.
    10. Donni, Olivier & Molina, José Alberto, 2018. "Household Collective Models: Three Decades of Theoretical Contributions and Empirical Evidence," IZA Discussion Papers 11915, Institute of Labor Economics (IZA).
    11. Jara-Díaz, Sergio & Rosales-Salas, Jorge, 2017. "Beyond transport time: A review of time use modeling," Transportation Research Part A: Policy and Practice, Elsevier, vol. 97(C), pages 209-230.
    12. Alberto Alesina & Andrea Ichino & Loukas Karabarbounis, 2011. "Gender-Based Taxation and the Division of Family Chores," American Economic Journal: Economic Policy, American Economic Association, vol. 3(2), pages 1-40, May.
    13. André de Palma & Nathalie Picard & Ignacio Inoa, 2014. "Discrete choice decision-making with multiple decision-makers within the household," Chapters, in: Stephane Hess & Andrew Daly (ed.), Handbook of Choice Modelling, chapter 16, pages 363-382, Edward Elgar Publishing.
    14. Chiuri, Maria Concetta, 2000. "Individual decisions and household demand for consumption and leisure," Research in Economics, Elsevier, vol. 54(3), pages 277-324, September.
    15. Laurens Cherchye & Thomas Demuynck & Bram De Rock, 2011. "Revealed Preference Analysis of Non‐Cooperative Household Consumption," Economic Journal, Royal Economic Society, vol. 121(555), pages 1073-1096, September.
    16. Shelly Lundberg & Aloysius Siow, 2017. "Canadian contributions to family economics," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 50(5), pages 1304-1323, December.
    17. Grossbard-Shechtman, Shoshana, 2003. "A consumer theory with competitive markets for work in marriage," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 31(6), pages 609-645.
    18. Alam, Saad, 2012. "The Effect of Gender-Based Returns to Borrowing on Intra-Household Resource Allocation in Rural Bangladesh," World Development, Elsevier, vol. 40(6), pages 1164-1180.
    19. Klein, Matthew J. & Barham, Bradford L., 2018. "Point Estimates of Household Bargaining Power Using Outside Options," Staff Paper Series 590, University of Wisconsin, Agricultural and Applied Economics.
    20. Frederic Vermeulen, 2002. "Collective Household Models: Principles and Main Results," Journal of Economic Surveys, Wiley Blackwell, vol. 16(4), pages 533-564, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:wpaper:halshs-00590395. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.