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Marriage, the Sharing Rule, and Pocket Money: The Case of South Korea

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  • Lee, Jungmin

Abstract

Using longitudinal data on private consumption from South Korea, this article examines the marital balance of power between spouses in a dynamic setting by allowing for unobserved heterogeneity at the household level and spouses' time-constant unobserved bargaining power. I find that unobserved power plays a significant role in intrahousehold resource allocation. The income pooling hypothesis is no longer rejected after accounting for unobserved power. Relative spousal earnings may be a good proxy for the long-term balance of power to an extent that cross-sectional variation in relative earnings across households reflects the pattern of spousal matching. However within-marriage changes in relative earnings do not induce any significant resource transfer between spouses. The balance of bargaining power is stable within marriage.

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Bibliographic Info

Article provided by University of Chicago Press in its journal Economic Development and Cultural Change.

Volume (Year): 55 (2007)
Issue (Month): 3 (April)
Pages: 557-81

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Handle: RePEc:ucp:ecdecc:y:2007:v:55:i:3:p:557-81

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Web page: http://www.journals.uchicago.edu/EDCC/

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Cited by:
  1. Amuedo-Dorantes, Catalina & Bonke, Jens & Grossbard, Shoshana, 2010. "Income Pooling and Household Division of Labor: Evidence from Danish Couples," IZA Discussion Papers 5418, Institute for the Study of Labor (IZA).
  2. Kawaguchi, Daiji & Lee, Jungmin & Hamermesh, Daniel S., 2012. "A Gift of Time," IZA Discussion Papers 6700, Institute for the Study of Labor (IZA).

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