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Gender ratio, divorce rate, and intra-household collective decision process: evidence from iranian urban households labor supply with non-participation

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  • GholamReza Haddad

Abstract

This paper provides an empirical investigation on the individual labor supply of Iranian spouses in an intra-household collective decision framework in which gender ratio and divorce rate play a central role for resource allocation of household. The dataset is taken from the Households’ Expenditures Survey (2008) and the Annual Statistical Yearbook (2008) of Iran. I have conducted the parameters estimation and hypothesis testing using switching regression technique to catch the presence of the widespread non-participation of spouses across Iranian households. Reduced forms of labor supply are estimated considering the endogeneity of wage rates. The findings show that the unitary model of resource allocation and the collective model of decision process under Iranian civil procedure rules are strongly rejected, but the Pareto efficiency in the family resource allocation and validity of the specified model are confirmed. Furthermore, the coherency condition of labor supply reduced forms is satisfied. The structural labor supplies are derived from the reduced forms, and they indicate that leisure is a normal good for spouses. They also show the cross elasticity of a wife’s labor supply with respect to her husband’s wage is negative. The calculated marginal effect of non-labor income on the wife’s share is 0.76. The gender ratio and the divorce rate are both significant determinants of the sharing rule and the estimated coefficients of these variables are consistent with theoretical considerations. Copyright Springer-Verlag Berlin Heidelberg 2015

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  • GholamReza Haddad, 2015. "Gender ratio, divorce rate, and intra-household collective decision process: evidence from iranian urban households labor supply with non-participation," Empirical Economics, Springer, vol. 48(4), pages 1365-1394, June.
  • Handle: RePEc:spr:empeco:v:48:y:2015:i:4:p:1365-1394
    DOI: 10.1007/s00181-014-0828-4
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    Cited by:

    1. Amábile Florencia, 2023. "Collective Labor Supply, Divisions of Domestic Work and Intra-household Bargaining," Asociación Argentina de Economía Política: Working Papers 4624, Asociación Argentina de Economía Política.
    2. Sevias Guvuriro & Frederik Booysen, 2021. "Family‐type public goods and intra‐household decision‐making by co‐resident South African couples," Review of Development Economics, Wiley Blackwell, vol. 25(3), pages 1629-1647, August.
    3. Xiangdan Piao, 2023. "Intra-Household Income Management and Couple’s Relative Sharing of Income and Environment Sustainability in Japan," Sustainability, MDPI, vol. 15(7), pages 1-17, April.
    4. Olivier Donni & Eleonora Matteazzi, 2018. "Collective decisions, household production, and labor force participation," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 33(7), pages 1064-1080, November.
    5. Bharati Basu & Pushkar Maitra, 2020. "Intra‐household bargaining power and household expenditure allocation: Evidence from Iran," Review of Development Economics, Wiley Blackwell, vol. 24(2), pages 606-627, May.
    6. Shahram Moeeni & Maryam Moeeni, 2021. "The Impact of Intra-household Bargaining Game on Progression to Third Birth in Iran," Journal of Family and Economic Issues, Springer, vol. 42(1), pages 61-72, March.
    7. Xiangdan Piao, 2021. "Marriage Stability and Private Versus Shared Expenditures Within Families: Evidence from Japanese Families," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 153(2), pages 533-559, January.
    8. Xiangdan Piao & Xinxin Ma & Shunsuke Managi, 2021. "Impact of the Intra-household Education Gap on Wives’ and Husbands’ Well-Being: Evidence from Cross-Country Microdata," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 156(1), pages 111-136, July.
    9. Maryam Moeeni & Arash Rashidian & Akbar Aghajanian, 2018. "Women’s relative status and childbearing intentions: Empirical evidence from Iran," PLOS ONE, Public Library of Science, vol. 13(4), pages 1-10, April.
    10. Basu, Bharati, 2021. "Do institutional norms affect behavioral preferences: A view from gender bias in the intra-household expenditure allocation in Iran," Economic Modelling, Elsevier, vol. 97(C), pages 118-134.

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    More about this item

    Keywords

    Intra-household decision process; Gender ratio; Divorce rate; Non-participation; D13; J22;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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