Intrahousehold Allocation and Bargaining Power: Evidence from Chile

Claudia Martínez A.

34 citations0/0 files storedEconomic Development and Cultural Change

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Gender, Labor, and Family Dynamics Family Dynamics and Relationships Labor market dynamics and wage inequality

Abstract

Until 1999, children born out of wedlock in Chile had fewer child support rights than those born to married couples. I interpret a change in this law as an increase in the household bargaining power of women in cohabiting relationships. Using a panel of cross-sectional data, I find a decrease of 1.8 percentage points in the probability of working among men and an increase of 1.2 percentage points in school attendance of children under 19. These results provide evidence that contradicts the predictions of the unitary household model as well as the Nash bargaining model. The labor market outcomes support a model in which a reduction in men’s relative bargaining power is understood as a tax on their wages.

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References

2019American Economic Review 2018The unpublished manuscript 1981Nash-Bargained Household Decisions: Toward a Generalization of the Theory of Demand 1988Rational Household Labor Supply 2003Grandmothers and Granddaughters: Old-Age Pensions and Intrahousehold Allocation in South Africa 1997Do Husbands and Wives Pool Their Resources? Evidence from the United Kingdom Child Benefit 1996Bargaining and Distribution in Marriage 1996Gender, Agricultural Production, and the Theory of the Household

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