Bargaining over Time Allocation: Economic Modeling and by Miriam Beblo

By Miriam Beblo

In this booklet, time use habit inside of families is modeled because the consequence of a bargaining method among relations who discount over loved ones source allocation and the intrafamily distribution of welfare. In view of tendencies resembling emerging girl employment in addition to falling fertility premiums and extending divorce charges, a strategic element of girl employment is analyzed in a dynamic family members bargaining framework. The department of house responsibilities among spouses and the saw relaxation differential among men and women are investigated inside non-cooperative bargaining settings. The versions built are demonstrated empirically utilizing info from the German Socio-Economic Panel and the German Time finances Survey.

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This assumption implies that for the consumption decision it should not matter who receives or controls income, since if all income is pooled and serves as a budget constraint to the maximization of a single utility function, only total family income will affect household demand. " (Doss 1996: 1601). Nevertheless if household expenditure differs depending on who earns the income or, what is even more important from the perspective of the policy maker, who receives the transfer payment, we can still conclude that the allocation of resources within the household has changed, even though we do not observe exactly who obtains what.

The empirical evidence presented by Fortin/Lacroix thus suggests that the collective model is inadequate in the case of young couples with pre-school children, as Maria Concetta Chiuri (1997) puts it. She extends the framework to include young children. When examining the labor supply decisions of Italian households who use formal child care, Chiuri finds evidence for the extended version of the collective model. She also rejects the restrictions imposed by the Slutsky's symmetry condition. Benjamin Senauer (1990) discusses three studies on the value of women's time and intrahousehold food allocation in Sri Lanka and the Philippines, where the value of time is measured by the woman's estimated wage rate.

Unless binding long-term contracts can be made between the partners, rational behavior always leads to inefficient outcomes with respect to time allocation and household production within the family. In this model labor supply decisions are also determined by 24 Woolley (1988) as well as Konrad/Lommerud (1996) also model intrafamily decision making as a Nash bargaining model with internal threat points. 40 The strategic aspect of female labor supply strategic bargaining considerations, thereby extending the traditional framework.

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