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The Changing Intra-Household Resource Allocation in Russia

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  • Lacroix, Guy

    ()
    (Université Laval)

  • Radtchenko, Natalia

    ()
    (University of Paris 1 Panthéon-Sorbonne)

Abstract

During the transition toward a market economy, Russian workers have had to face important structural changes in the labour market as well as dramatic changes in their real earnings. In the process, the wage gap between men and women has varied wildly over that period. In recent years, young women have embraced professional careers, are more mobile on the labour market, and tend to delay the birth of their first child. All these trends are likely to influence intra-household relations and consequently the family decision process. To investigate this matter, we estimate a household collective labour supply model. We generalize the specification so as to allow the sharing rule to change in a discrete manner between the pre and post 1998 financial crisis periods. The parameters of the sharing-rule indicate that the households have shifted to a new equilibrium in the post-1998 period. Indeed, husbands have become more egotistic and wives more altruistic: An increase in their relative wage translates into a smaller/larger transfer to their spouse.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3733.

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Length: 42 pages
Date of creation: Sep 2008
Date of revision:
Publication status: published in: Journal of Population Economics, 2011, 24(1), 85-106
Handle: RePEc:iza:izadps:dp3733

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Keywords: Russian economic crisis; sharing rule; collective model;

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References

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  1. M. Browning & P. A. Chiappori, 1998. "Efficient Intra-Household Allocations: A General Characterization and Empirical Tests," Econometrica, Econometric Society, vol. 66(6), pages 1241-1278, November.
  2. Bernard Fortin & Guy Lacroix & Marie-Claire Villeval, 2004. "Tax Evasion and Social Interactions," CIRANO Working Papers 2004s-61, CIRANO.
  3. Laurens Cherchye & Bram De Rock & Frederic Vermeulen, 2009. "Opening the black box of intrahousehold decision making: theory and nonparametric empirical tests of general collective consumption models," ULB Institutional Repository 2013/98561, ULB -- Universite Libre de Bruxelles.
  4. Laurens Cherchye & Bram De Rock & Jeroen Sabbe & Frederic Vermeulen, 2008. "Nonparametric tests of collectively rational consumption behavior: an integer programming procedure," ULB Institutional Repository 2013/131712, ULB -- Universite Libre de Bruxelles.
  5. Blundell, Richard & Chiappori, Pierre-André & Magnac, Thierry & Meghir, Costas, 2005. "Collective Labour Supply: Heterogeneity and Nonparticipation," IZA Discussion Papers 1785, Institute for the Study of Labor (IZA).
  6. Pierre-Andre Chiappori & Bernard Fortin & Guy Lacroix, 2002. "Marriage Market, Divorce Legislation, and Household Labor Supply," Journal of Political Economy, University of Chicago Press, vol. 110(1), pages 37-72, February.
  7. C. Gourieroux & Jean-Jacques Laffont & A. Monfort, 1979. "Coherency Conditions In Simultaneous Linear Equation Models With Endogenous Switching Regimes," NBER Working Papers 0343, National Bureau of Economic Research, Inc.
  8. Natalia Radtchenko, 2007. "Intra-household Welfare Distribution by a New Method of the Sharing Rule Identification," Working Papers 2007-08, Centre de Recherche en Economie et Statistique.
  9. Michael Lokshin & Martin Ravallion, 2000. "Welfare Impacts of the 1998 Financial Crisis in Russia and the Response of the Public Safety Net," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 8(2), pages 269-295, July.
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  11. Lokshin, Michael M. & Yemtsov, Ruslan, 2001. "Household strategies for coping with poverty and social exclusion in post-crisis Russia," Policy Research Working Paper Series 2556, The World Bank.
  12. Lacroix, Guy & Fortin, Bernard, 1992. "Utility-Based Estimation of Labour Supply Functions in the Regular and Irregular Sectors," Economic Journal, Royal Economic Society, vol. 102(415), pages 1407-22, November.
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  15. Fortin, Bernard & Lacroix, Guy, 1997. "A Test of the Unitary and Collective Models of Household Labour Supply," Economic Journal, Royal Economic Society, vol. 107(443), pages 933-55, July.
  16. Christopher Gerry & Byung-Yeon Kim & Carmen A Li, 2002. "The Gender Wage Gap and Wage Arrears in Russia: Evidence from the RLMS," Working Papers 24 Key Words: RLMS, gende, CENTRE FOR THE STUDY OF ECONOMIC AND SOCIAL CHANGE IN EUROPE,School of Slavonic and East European Studies,University College London (SSEES,UCL).
  17. Mroz, Thomas A & Popkin, Barry M, 1995. "Poverty and the Economic Transition in the Russian Federation," Economic Development and Cultural Change, University of Chicago Press, vol. 44(1), pages 1-31, October.
  18. Guy Lacroix & Natalia Radtchenko, 2008. "The Changing Intra-Household Resource Allocation in Russia," Cahiers de recherche 0811, CIRPEE.
  19. Ekaterina Kalugina & Natalia Radtchenko & Catherine Sofer, 2007. "How do Spouses Share their Full Income? : Identification of the Sharing Rule Using Self-reported Income," Working Papers 2007-07, Centre de Recherche en Economie et Statistique.
  20. Elena Glinskaya & Thomas A. Mroz, 2000. "The gender gap in wages in Russia from 1992 to 1995," Journal of Population Economics, Springer, vol. 13(2), pages 353-386.
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  22. Natalia Radtchenko, 2009. "Identifying Intra-household Welfare Distribution," Documents de recherche 09-04, Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne.
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Citations

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Cited by:
  1. Natalia Radtchenko, 2009. "Identifying Intra-household Welfare Distribution," Documents de recherche 09-04, Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne.
  2. Laurens CHERCHYE & Bram DE ROCK & Jeroen SABBE & Ewout VERRIEST, 2010. "Commitment in intertemporal household consumption: a revealed preference analysis," Center for Economic Studies - Discussion papers ces10.33, Katholieke Universiteit Leuven, Centrum voor Economische Studiën.
  3. Cherchye, L.J.H. & Rock, B. de & Vermeulen, F.M.P., 2011. "The revealed preference approach to collective consumption behavior: Testing and sharing rule recovery," Open Access publications from Tilburg University urn:nbn:nl:ui:12-3857700, Tilburg University.
  4. Guy Lacroix & Natalia Radtchenko, 2011. "The changing intra-household resource allocation in Russia," Journal of Population Economics, Springer, vol. 24(1), pages 85-106, January.
  5. Ekaterina Kalugina & Catherine Sofer & Natalia Radtchenko, 2009. "Intra-household inequality in transitional Russia," Review of Economics of the Household, Springer, vol. 7(4), pages 447-471, December.

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