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Intrahousehold allocation of financial resources: evidence from South Korean individual bank accounts

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  • Jungmin Lee
  • Mark L. Pocock

Abstract

Using individual bank account data from South Korea, where joint accounts are rare and the legal system emphasizes the individuality of financial transactions, we examine the distribution of financial resources between spouses within households. We find that each member’s share of household savings depends on the balance of bargaining power. We also find that the wife’s bargaining power increases total household savings. The findings deviate from the unitary model. Copyright Springer Science+Business Media, LLC 2007

Suggested Citation

  • Jungmin Lee & Mark L. Pocock, 2007. "Intrahousehold allocation of financial resources: evidence from South Korean individual bank accounts," Review of Economics of the Household, Springer, vol. 5(1), pages 41-58, March.
  • Handle: RePEc:kap:reveho:v:5:y:2007:i:1:p:41-58
    DOI: 10.1007/s11150-007-9004-3
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    Cited by:

    1. Alistair Munro, 2014. "Hide and Seek: A Theory of Efficient Income Hiding within the Household," GRIPS Discussion Papers 14-17, National Graduate Institute for Policy Studies.
    2. Metzger, Christoph, 2018. "Intra-household allocation of non-mandatory retirement savings," The Journal of the Economics of Ageing, Elsevier, vol. 12(C), pages 77-87.
    3. Amuedo-Dorantes, Catalina & Bonke, Jens & Grossbard, Shoshana, 2010. "Income Pooling and Household Division of Labor: Evidence from Danish Couples," IZA Discussion Papers 5418, Institute of Labor Economics (IZA).
    4. GRABKA Markus & MARCUS Jan & SIERMINSKA Eva, 2013. "Wealth distribution within couples and financial decision making," LISER Working Paper Series 2013-02, Luxembourg Institute of Socio-Economic Research (LISER).
    5. Merike Kukk & W. Fred Raaij, 2022. "Joint and Individual Savings within Families: Evidence from Bank Accounts," Journal of Family and Economic Issues, Springer, vol. 43(3), pages 511-533, September.
    6. Oyvat, Cem & Onaran, Özlem, 2022. "The effects of social infrastructure and gender equality on output and employment: The case of South Korea," World Development, Elsevier, vol. 158(C).
    7. Luis San Vicente Portes & Vidya Atal & Miriam Juárez-Torres, 2019. "Women's Empowerment: Aggregate Effects on Savings and Wealth," Working Papers 2019-21, Banco de México.
    8. Shoshana Grossbard & Elena Stancanelli, 2010. "Whose time? Who saves? Introduction to a special issue on couples’ savings, time use and children," Review of Economics of the Household, Springer, vol. 8(3), pages 289-296, September.
    9. Francis Tsiboe & Yacob A. Zereyesus & Jennie S. Popp & Evelyn Osei, 2018. "The Effect of Women’s Empowerment in Agriculture on Household Nutrition and Food Poverty in Northern Ghana," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 138(1), pages 89-108, July.
    10. Shoshana Amyra Grossbard & Alfredo Marvão Pereira, 2013. "Savings and Economies of Marriage: Intra-Marriage Financial Distributions as Determinants of Savings," Working Papers 95, Department of Economics, College of William and Mary.
    11. Shoshana Amyra Grossbard & Alfredo Marvao Pereira & Shoshana Grossbard, 2010. "Will Women Save more than Men? A Theoretical Model of Savings and Marriage," CESifo Working Paper Series 3146, CESifo.
    12. Markus Grabka & Jan Marcus & Eva Sierminska, 2015. "Wealth distribution within couples," Review of Economics of the Household, Springer, vol. 13(3), pages 459-486, September.
    13. Yoshihiko Kadoya & Mostafa Saidur Rahim Khan, 2020. "Financial Literacy in Japan: New Evidence Using Financial Knowledge, Behavior, and Attitude," Sustainability, MDPI, vol. 12(9), pages 1-15, May.
    14. Fernandes, Inês & Schmidt, Tobias, 2021. "Household bargaining, pension contributions and retirement expectations: Evidence from the German Panel on Household Finances," Discussion Papers 44/2021, Deutsche Bundesbank.
    15. Dang, Hai-Anh H. & Viet Nguyen, Cuong, 2021. "Gender inequality during the COVID-19 pandemic: Income, expenditure, savings, and job loss," World Development, Elsevier, vol. 140(C).
    16. Edwin Wong, 2015. "Marital bargaining in the demand for life insurance: evidence from the Health and Retirement Study," Review of Economics of the Household, Springer, vol. 13(2), pages 243-268, June.
    17. Botha, Ferdi & Ribar, David C., 2020. "For Worse? Financial Hardships and Intra-Household Resource Allocation among Australian Couples," IZA Discussion Papers 13935, Institute of Labor Economics (IZA).
    18. Tansel Yilmazer & Stephen Lich, 2015. "Portfolio choice and risk attitudes: a household bargaining approach," Review of Economics of the Household, Springer, vol. 13(2), pages 219-241, June.
    19. Sara Cantillon & Bertrand Maître & Dorothy Watson, 2016. "Family Financial Management and Individual Deprivation," Journal of Family and Economic Issues, Springer, vol. 37(3), pages 461-473, September.
    20. San Vicente Portes, Luis & Atal, Vidya & Juárez Torres, Miriam, 2019. "From households to national statistics: Macroeconomic effects of Women's empowerment," Economic Modelling, Elsevier, vol. 79(C), pages 286-294.
    21. Katherine Grace Carman & Angela A. Hung, 2017. "Household Retirement Saving The Location of Savings Between Spouses," Working Papers WR-1166, RAND Corporation.
    22. Sergii Maksymovych, 2017. "Decision-Making in the Household and Material Deprivation," CERGE-EI Working Papers wp604, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    23. Yangtao Huang & Francisco Perales & Mark Western, 2019. "To pool or not to pool? Trends and predictors of banking arrangements within Australian couples," PLOS ONE, Public Library of Science, vol. 14(4), pages 1-29, April.

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    More about this item

    Keywords

    Savings; Household bargaining; D1; E2;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment

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