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Do Couples Bargain over Fertility? Evidence Based on Child Preference Data

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  • Timo Hener

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Abstract

Empirical literature has found evidence in favour of household bargaining models.In contrast to earlier tests that are limited to assignable private goods, we use childpreference data in order to extend the empirical evidence on household bargaining topublic household goods. In the empirical analysis, we exploit the different theoreticalpredictions for couples with heterogeneous and homogeneous preferences derivedfrom household models. Our results indicate that couples bargain over fertility.Furthermore, we find that the ability to commit to household resource allocationsdepends on the gender of the partner with higher preferences.

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Bibliographic Info

Paper provided by Ifo Institute for Economic Research at the University of Munich in its series Ifo Working Paper Series with number Ifo Working Paper Nr. 92.

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Date of creation: 2010
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Handle: RePEc:ces:ifowps:_92

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Keywords: Fertility; child preferences; intra-household allocation; bargaining; limited commitment.;

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References

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  1. Anne Gauthier, 2007. "The impact of family policies on fertility in industrialized countries: a review of the literature," Population Research and Policy Review, Springer, vol. 26(3), pages 323-346, June.
  2. George B. Roberts, Chairman, Universities-National Bureau Committee for Economic Research, 1960. "Demographic and Economic Change in Developed Countries," NBER Books, National Bureau of Economic Research, Inc, number univ60-2.
  3. Ermisch, John & Pronzato, Chiara, 2006. "Intra-household allocation of resources: inferences from non-resident fathers' child support payments," ISER Working Paper Series 2006-57, Institute for Social and Economic Research.
  4. Iyigun, Murat & Walsh, Randall P., 2007. "Endogenous gender power, household labor supply and the demographic transition," Journal of Development Economics, Elsevier, vol. 82(1), pages 138-155, January.
  5. Kaushik Basu, 2004. "Gender and Say A Model of Household Behavior with Endogenously-determined Balance of Power," Harvard Institute of Economic Research Working Papers 2054, Harvard - Institute of Economic Research.
  6. Alessandro Cigno & Luca Casolaro & Furio C. Rosati, 2002. "The Impact of Social Security on Saving and Fertility in Germany," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 59(2), pages 189-, May.
  7. Cigno, Alessandro & Ermisch, John, 1989. "A microeconomic analysis of the timing of births," European Economic Review, Elsevier, vol. 33(4), pages 737-760, April.
  8. Qian, Nancy, 2006. "Missing Women and the Price of Tea in China: The Effect of Sex-Specific Earnings on Sex Imbalance," CEPR Discussion Papers 5986, C.E.P.R. Discussion Papers.
  9. Rasul, Imran, 2008. "Household bargaining over fertility: Theory and evidence from Malaysia," Journal of Development Economics, Elsevier, vol. 86(2), pages 215-241, June.
  10. Ligon, Ethan, 2002. "Dynamic bargaining in households (with an application to Bangladesh)," CUDARE Working Paper Series 972, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy.
  11. Ai, Chunrong & Norton, Edward C., 2003. "Interaction terms in logit and probit models," Economics Letters, Elsevier, vol. 80(1), pages 123-129, July.
  12. Browning, Martin & Francois Bourguignon & Pierre-Andre Chiappori & Valerie Lechene, 1994. "Income and Outcomes: A Structural Model of Intrahousehold Allocation," Journal of Political Economy, University of Chicago Press, vol. 102(6), pages 1067-96, December.
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Citations

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Cited by:
  1. Alexander Kemnitz & Marcel Thum, 2012. "Gender Power, Fertility, and Family Policy," CESifo Working Paper Series 3798, CESifo Group Munich.
  2. Marcus Klemm, 2012. "Job Security and Fertility: Evidence from German Reunification," Ruhr Economic Papers 0379, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  3. Mizuki Komura, 2013. "Fertility and endogenous gender bargaining power," Journal of Population Economics, Springer, vol. 26(3), pages 943-961, July.

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