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Household Decision Making and the Influence of Spouses' Income, Education, and Communist Party Membership: A Field Experiment in Rural China

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Author Info

  • Carlsson, Fredrik

    ()
    (University of Gothenburg)

  • Martinsson, Peter

    ()
    (University of Gothenburg)

  • Qin, Ping

    ()
    (University of Gothenburg)

  • Sutter, Matthias

    ()
    (European University Institute)

Abstract

We study household decision making in a high-stakes experiment with a random sample of households in rural China. Spouses have to choose between risky lotteries, first separately and then jointly. We find that spouses' individual risk preferences are more similar the richer the household and the higher the wife's relative income contribution. A couple's joint decision is typically determined by the husband, but women who contribute relatively more to the household income, women in high-income households, women with more education than their husbands, and women with communist party membership have a stronger influence on the joint decision.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4139.

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Length: 34 pages
Date of creation: Apr 2009
Date of revision:
Handle: RePEc:iza:izadps:dp4139

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Keywords: household decision making; risk; field experiment; China;

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References

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Citations

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Cited by:
  1. Paolo Crosetto & Antonio Filippin & Janna Heider, 2013. "A Study of Outcome Reporting Bias Using Gender Differences in Risk Attitudes," CESifo Working Paper Series 4466, CESifo Group Munich.
  2. Alistair Munro & Danail Popov, 2013. "A portmanteau experiment on the relevance of individual decision anomalies for households," Experimental Economics, Springer, vol. 16(3), pages 335-348, September.
  3. He, Haoran & Martinsson, Peter & Sutter, Matthias, 2012. "Group decision making under risk: An experiment with student couples," Economics Letters, Elsevier, vol. 117(3), pages 691-693.
  4. Alistair Munro & Bereket Kebede & Marcela Tarazona-Gomez & Arjan Verschoor, 2011. "Autonomy or Efficiency. An experiment on household decisions in two regions of India," GRIPS Discussion Papers 10-33, National Graduate Institute for Policy Studies.
  5. Miriam Beblo & Denis Beninger, 2012. "Do husbands and wives pool their incomes? Experimental evidence," Working Papers of BETA 2012-10, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.

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