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Spousal Employment and Intra-Household Bargaining Power
1University of Colorado Boulder.
Applied Economics Letters
|October 25, 2014
Summary
Household employment significantly impacts spousal decision-making power. When wives work, they gain more influence, and husbands are less likely to be sole decision-makers, reflecting economic resources and bargaining power dynamics.
Area of Science:
- Sociology
- Economics
- Family Studies
Background:
- Traditional household models often overlook the nuanced interplay between spousal employment and intra-household decision-making power.
- Understanding these dynamics is crucial for comprehending gender roles and economic resource allocation within families.
Purpose of the Study:
- To investigate the causal relationship between a spouse's work status and their involvement in household decision-making.
- To examine how employment influences the bargaining power of both the head of household and their spouse.
Main Methods:
- Utilized household fixed effects models to control for unobserved household-specific factors.
- Analyzed data on spousal work status and decision-making involvement.
Main Results:
- Spouse involvement in decisions significantly increases when the wife is employed.
- The head of household is less likely to be the sole decision-maker when their spouse is employed, indicating a shift in bargaining power.
Conclusions:
- Spousal employment is a key determinant of intra-household bargaining power and decision-making.
- Economic resources derived from employment directly correlate with increased influence within the household.
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