Testing for the Existence of Bargaining in Rural Households: a Study of Decisions on Labor Market Participation in the Cordillera Region of the Philippines
AbstractIn this paper we derive testable implications of a unitary farm household model and a non-unitary, i.e. bargaining, model. In the unitary household model the impact of spouse specific resources and non-labor income on household decisions should not be different from that of the resources and non-labor income common to the household. In a bargaining model we expect to find a specific impact of spouse specific resources and non-labor income. Our empirical tests are based on a small survey of households in the Cordillera region of Northern Luzon (Philippines). In this region each spouse retains specific rights on her/his inherited land, although within marriage this land is treated as part of the household farm. Inherited land is a truly exogenous variable, which we use as the indicator of bargaining power. We perform probit regressions in which the spouses’ inherited land is a determinant of the probability that a husband or wife participates in the labor market. The statistical results provide some evidence of a specific impact of spouse specific land on labor market participation decisions and therefore cast doubt on the unitary farm household model. They are compatible with a bargaining model of household behavior.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Katholieke Universiteit Leuven, Centrum voor Economische Studiën in its series Center for Economic Studies - Discussion papers with number ces0209.
Date of creation: Mar 2002
Date of revision:
This paper has been announced in the following NEP Reports:
You can help add them by filling out this form.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Karla Vander Weyden).
If references are entirely missing, you can add them using this form.