The effects of social transfers on individual participation and working hours are theoretically shown to differ for unitary and bargaining intrahousehold allocation models. This result is attributed to both the non-transferability of in-kind social transfers and differences in control of these transfers among household members. Using elasticities of social transfers on work effort (estimated through sample selection corrected participation probits and working hour OLS), new tests on intrahousehold allocation are developed for Chile. These tests strongly reject the unitary model and exogenous bargaining, accepting endogenous bargaining only among non-poor households. Poor households may use social incomes as investments for the future rather than for short-term strategic power relations.
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number
12410.
Length: Date of creation: Aug 2004 Date of revision: Publication status: Published in Journal of Income Distribution 1/2.12(2004): pp. 76-104 Handle: RePEc:pra:mprapa:12410
Find related papers by JEL classification: D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Killingsworth, Mark R. & Heckman, James J., 1987.
"Female labor supply: A survey,"
Handbook of Labor Economics,
in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 1, chapter 2, pages 103-204
Elsevier.
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