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Gender differences in education in a dynamic household bargaining model

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Author Info

  • Antonio Merlo

    (University of Minnesota)

  • Cristina Echevarria

    (University of Saskatoon)

Abstract

In this paper, we explore the issue of gender differences in education in the context of a two-sexoverlapping generations model where men and women of each generation bargain over consumption, number of children, and investment in education of their children conditional on gender, andparents are altruistic toward their children. We show that the difference in the education levels ofboys and girls implied by our model is smaller than the one that would result from a pureinvestment model. Also, we show that as long as the time cost associated with bearing childrenis positive, women bear the entire time cost associated with child rearing. We use our model toestimate the cost to a woman of having a child. The estimate we obtain using cross-country datasuggests that such cost amounts to about 5% of the working lifetime of a woman.

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File URL: http://www.ivie.es/downloads/docs/wpasad/wpasad-1997-25.pdf
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Bibliographic Info

Paper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie AD with number 1997-25.

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Length: 2 pages
Date of creation: Dec 1997
Date of revision:
Publication status: Published by Ivie
Handle: RePEc:ivi:wpasad:1997-25

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Related research

Keywords: Fertility; marriage; overlapping generations;

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References

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  1. Sanders Korenman & David Neumark, 1990. "Marriage, Motherhood, and Wages," NBER Working Papers 3473, National Bureau of Economic Research, Inc.
  2. Chiappori, Pierre-Andre, 1992. "Collective Labor Supply and Welfare," Journal of Political Economy, University of Chicago Press, vol. 100(3), pages 437-67, June.
  3. Gary S. Becker & Robert J. Barro, 1988. "A Reformulation of the Economic Theory of Fertility," NBER Working Papers 1793, National Bureau of Economic Research, Inc.
  4. Bahrman, J.R. & Deolalikar, A.B., 1990. "Are There Differential Returns To Schooling By Gender? The Case Of Indonesian Labor Market," Working Papers 90-19, University of Washington, Department of Economics.
  5. Boulier, Bryan L & Rosenzweig, Mark R, 1984. "Schooling, Search, and Spouse Selection: Testing Economic Theories of Marriage and Household Behavior," Journal of Political Economy, University of Chicago Press, vol. 92(4), pages 712-32, August.
  6. Behrman, Jere R & Deolalikar, Anil B, 1995. "Are There Differential Returns to Schooling by Gender? The Case of Indonesian Labour Markets," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 57(1), pages 97-117, February.
  7. Rosenzweig, Mark R & Schultz, T Paul, 1982. "Market Opportunities, Genetic Endowments, and Intrafamily Resource Distribution: Child Survival in Rural India," American Economic Review, American Economic Association, vol. 72(4), pages 803-15, September.
  8. Bahrman, J.R. & Deolalikar, A.B., 1990. "Are There Differential Returns To Schooling By Gender? The Case Of Indonesian Labor Market," Discussion Papers in Economics at the University of Washington 90-19, Department of Economics at the University of Washington.
  9. Cole, Harold L & Mailath, George J & Postlewaite, Andrew, 1992. "Social Norms, Savings Behavior, and Growth," Journal of Political Economy, University of Chicago Press, vol. 100(6), pages 1092-1125, December.
  10. Behrman, Jere R & Pollak, Robert A & Taubman, Paul, 1986. "Do Parents Favor Boys?," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 27(1), pages 33-54, February.
  11. Schultz, T.P., 1990. "Returns To Women'S Education," Papers 603, Yale - Economic Growth Center.
  12. Ted Bergstrom, 1995. "A Survey of Theories of the Family," Papers _027, University of Michigan, Department of Economics.
  13. Peter Rupert & Richard Rogerson & Randall Wright, 1994. "Estimating substitution elasticities in household production models," Staff Report 186, Federal Reserve Bank of Minneapolis.
  14. Manser, Marilyn & Brown, Murray, 1980. "Marriage and Household Decision-Making: A Bargaining Analysis," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 21(1), pages 31-44, February.
  15. McElroy, Marjorie B & Horney, Mary Jean, 1981. "Nash-Bargained Household Decisions: Toward a Generalization of the Theory of Demand," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 22(2), pages 333-49, June.
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