IDEAS home Printed from
   My bibliography  Save this paper

Testing for the Existence of Bargaining in Rural Households: a Study of Decisions on Labor Market Participation in the Cordillera Region of the Philippines


  • Lorelei Crisologo Mendoza
  • Lodewijk Berlage


In this paper we derive testable implications of a unitary farm household model and a non-unitary, i.e. bargaining, model. In the unitary household model the impact of spouse specific resources and non-labor income on household decisions should not be different from that of the resources and non-labor income common to the household. In a bargaining model we expect to find a specific impact of spouse specific resources and non-labor income. Our empirical tests are based on a small survey of households in the Cordillera region of Northern Luzon (Philippines). In this region each spouse retains specific rights on her/his inherited land, although within marriage this land is treated as part of the household farm. Inherited land is a truly exogenous variable, which we use as the indicator of bargaining power. We perform probit regressions in which the spouses’ inherited land is a determinant of the probability that a husband or wife participates in the labor market. The statistical results provide some evidence of a specific impact of spouse specific land on labor market participation decisions and therefore cast doubt on the unitary farm household model. They are compatible with a bargaining model of household behavior.

Suggested Citation

  • Lorelei Crisologo Mendoza & Lodewijk Berlage, 2002. "Testing for the Existence of Bargaining in Rural Households: a Study of Decisions on Labor Market Participation in the Cordillera Region of the Philippines," Working Papers Department of Economics ces0209, KU Leuven, Faculty of Economics and Business, Department of Economics.
  • Handle: RePEc:ete:ceswps:ces0209

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ete:ceswps:ces0209. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (library EBIB). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.