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Household behavior and social norms: a conjugal contract model

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Abstract

We present a model of household behavior to explore the complex interactions between the decision-making process within the household and social norms. The household is viewed as two separate spheres – the female and the male – both linked by a public good and a "conjugal contract" trough which spouses exchange resources. The conjugal contract negotiated within the couple is partly influenced by social norms given the conformism of individuals. Social norms are endogenously determined as the average conjugal contract. We find that the closer spouses' wages are in the labor market, the more equally they share household tasks. Wage policies promoting gender wage equality lead all couples to renegotiate the terms of their conjugal contract, which in turn changes social norms. Even though spouses aim at maximizing the household's welfare, the resulting equilibrium allocation is not Pareto efficient and inefficiency increases with social conformism

Suggested Citation

  • Elisabeth Cudeville & Magali Recoules, 2009. "Household behavior and social norms: a conjugal contract model," Documents de travail du Centre d'Economie de la Sorbonne 09066, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    • Handle: RePEc:mse:cesdoc:09066
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    More about this item

    Keywords

    Conjugal contract; social norms; wage discrimination; household behavior; intra-household decision-making;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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