Public Policy

Bargaining over Time Allocation: Economic Modeling and by Miriam Beblo

By Miriam Beblo

In this e-book, time use habit inside of families is modeled because the end result of a bargaining procedure among family who discount over family source allocation and the intrafamily distribution of welfare. In view of traits corresponding to emerging lady employment in addition to falling fertility premiums and extending divorce premiums, a strategic element of woman employment is analyzed in a dynamic relations bargaining framework. The department of home tasks among spouses and the saw relaxation differential among men and women are investigated inside of non-cooperative bargaining settings. The types built are verified empirically utilizing info from the German Socio-Economic Panel and the German Time funds Survey.

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Additional info for Bargaining over Time Allocation: Economic Modeling and Econometric Investigation of Time Use within Families

Sample text

Shelly Lundberg, Robert Pollak and Terence Wales (1997) present a test of the pooling hypothesis based on a "natural experiment" provided by a change in the United Kingdom child benefit scheme in the late 1970s. This policy change that transferred the benefit from a tax deduction of the father to a substantial child allowance to the mother resulted in an increase of expenditures on women's and children's goods relative to men's goods. The authors conclude that, in contrast to the pooling hypothesis, who receives and controls income in the household significantly affects the family expenditure pattern.

Social networks or chances on the remarriage market) are determinants of the threat points. In other words, they serve as shifters of the threat points and as such help to explain time allocation in general and labor supply in particular. Since in the unitary model the opportunity costs of being married are not relevant, a statistical link between EEPs and intrahousehold allocation would provide evidence to reject its restrictions. Examples of EEPs include a country's legal structure governing marriage and divorce or the conditioning of governmental transfers on marital status.

In their human capital framework to model labor supply and fertility behavior of married women, the life cycle is divided into three stages distinguished by the presence and age of children or, interpreted somewhat differently, the demand for household production. A wife allocates her time between work in the labor force, work at home and leisure. She also chooses investment in her own human capital which affects her wage rate in subsequent periods. If the increase in future earnings is sufficiently large, she will work in the labor market even if her wage does not reach the shadow price of her time spent at home rearing children.

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