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Why do spouses hide income?

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  • Malapit, Hazel Jean L.

Abstract

This paper proposes a simplified model of intrahousehold decision making where cooperative and noncooperative behavior are not mutually exclusive. Individuals choose the optimal share of income they wish to devote towards cooperation, where income is pooled and allocated collectively, and towards noncooperation, where income is allocated independently. Using the example of joint saving as an area of household cooperation, this model shows how limited autonomy and bargaining power can interact to create incentives for individuals to hide income. This result provides theoretical support for the call to collect survey data separately from individuals rather than from household representatives.

Suggested Citation

  • Malapit, Hazel Jean L., 2012. "Why do spouses hide income?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(5), pages 584-593.
  • Handle: RePEc:eee:soceco:v:41:y:2012:i:5:p:584-593
    DOI: 10.1016/j.socec.2012.04.007
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    References listed on IDEAS

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    Cited by:

    1. GRABKA Markus & MARCUS Jan & SIERMINSKA Eva, 2013. "Wealth distribution within couples and financial decision making," LISER Working Paper Series 2013-02, LISER.
    2. Grabka, Markus M. & Marcus, Jan & Sierminska, Eva, 2015. "Wealth Distribution within Couples," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 459-486.

    More about this item

    Keywords

    Intrahousehold allocation; Income pooling; Saving; Bargaining power;

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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