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The Changing Intra-Household Resource Allocation in Russia

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Author Info
Lacroix, Guy () (Université Laval)
Radtchenko, Natalia () (University of Paris 1)

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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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Publisher 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
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Handle: RePEc:iza:izadps:dp3733

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

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Find related papers by JEL classification:
D1 - Microeconomics - - Household Behavior
J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
C5 - Mathematical and Quantitative Methods - - Econometric Modeling

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References listed on IDEAS
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  1. Pierre-Carl Michaud & Frederic Vermeulen, 2006. "A Collective Labor Supply Model: Identification and Estimation in the Presence of Externalities by Means of Panel Data," Working Papers 406, RAND Corporation Publications Department. [Downloadable!]
  2. Blundell, Richard & Chiappori, Pierre-André & Magnac, Thierry & Meghir, Costas, 2005. "Collective Labour Supply: Heterogeneity and Nonparticipation," IDEI Working Papers 373, Institut d'Économie Industrielle (IDEI), Toulouse. [Downloadable!]
    Other versions:
  3. Stillman, Steven & Thomas, Duncan, 2004. "The Effect of Economic Crises on Nutritional Status: Evidence from Russia," IZA Discussion Papers 1092, Institute for the Study of Labor (IZA). [Downloadable!]
  4. Christopher J. Gerry & Byung-Yeon Kim & Carmen A Li, 2004. "The gender wage gap and wage arrears in Russia: Evidence from the RLMS," Journal of Population Economics, Springer, vol. 17(2), pages 267-288, 06. [Downloadable!] (restricted)
    Other versions:
  5. 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. [Downloadable!] (restricted)
    Other versions:
  6. Cherchye, Laurens & Rock, Bram de & Vermeulen, Frederic, 2005. "Opening the black box of intra-household decision-making: theory and non-parametric empirical tests of general collective consumption models," Discussion Paper 51, Tilburg University, Center for Economic Research. [Downloadable!]
    Other versions:
  7. Fortin, Bernard & Lacroix, Guy & Villeval, Marie-Claire, 2007. "Tax evasion and social interactions," Journal of Public Economics, Elsevier, vol. 91(11-12), pages 2089-2112, December. [Downloadable!] (restricted)
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  8. Ekaterina Kalugina & Natalia Radtchenko & Catherine Sofer, 2006. "How do spouses share their full income ? Identification of the sharing rule using self-reported income," Cahiers de la Maison des Sciences Economiques bla06012, Université Panthéon-Sorbonne (Paris 1). [Downloadable!]
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  9. Hilary Hoynes, 1993. "Welfare Transfers in Two-Parent Families: Labor Supply and Welfare Participation Under AFDC-UP," NBER Working Papers 4407, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  10. 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. [Downloadable!] (restricted)
    Other versions:
  11. Olivier Donni, 2004. "Labor Supply, Home Production and Welfare Comparisons," Cahiers de recherche 0427, CIRPEE. [Downloadable!]
    Other versions:
  12. 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. [Downloadable!]
  13. 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. [Downloadable!] (restricted)
  14. 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, revised Aug 2007. [Downloadable!]
  15. Martin Browning & P.A. Chiappori, 1996. "Efficient Intra-Household Allocations - A General Characterization and Empirical Tests," Discussion Papers 96-10, University of Copenhagen. Department of Economics.
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  16. 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. [Downloadable!] (restricted)
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  17. 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. [Downloadable!] (restricted)
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