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Efficient Labor Supply for Latin Families: Is the Intra-Household Bargaining Power Relevant?

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  • Campaña, Juan Carlos

    (University of Zaragoza)

  • Gimenez-Nadal, J. Ignacio

    () (University of Zaragoza)

  • Molina, José Alberto

    () (University of Zaragoza)

Abstract

This paper analyzes the efficient labor supply of male and female workers in Latin American countries employing the collective model framework (Chiappori et al.,2002). Using data from Time Use Surveys for Mexico (2009) and Colombia (2012), we find evidence of Pareto-efficient labor supply decisions within households, as the collective rationality is not rejected in the two countries. We find that higher female wages are related to more labor market hours of female workers, and male workers show an altruistic behavior towards females with the increase of their labor income. Sex ratio are related to transfers of additional income from male to female workers in Colombia, which sheds light on the relevance of distribution factors in the internal decision process of the couple. Our results suggest that the distribution of bargaining power within the household is an important factor that should be considered when analyzing household decisions.

Suggested Citation

  • Campaña, Juan Carlos & Gimenez-Nadal, J. Ignacio & Molina, José Alberto, 2018. "Efficient Labor Supply for Latin Families: Is the Intra-Household Bargaining Power Relevant?," IZA Discussion Papers 11695, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp11695
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    Cited by:

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    2. Donni, Olivier & Molina, José Alberto, 2018. "Household Collective Models: Three Decades of Theoretical Contributions and Empirical Evidence," IZA Discussion Papers 11915, Institute of Labor Economics (IZA).
    3. Bautista Lacambra, Sergio, 2020. "Household labor supply: Collective results for certain developed countries," MPRA Paper 101514, University Library of Munich, Germany.
    4. Chiappori, Pierre-André & Molina, José Alberto & Gimenez-Nadal, J. Ignacio & Velilla, Jorge, 2019. "Intertemporal Labor Supply and Intra-Household Commitment," IZA Discussion Papers 12353, Institute of Labor Economics (IZA).
    5. Bautista-Lacambra, Sergio, 2020. "El ciclo vital en la familia:una estructura conceptual dinámica [A family's life-cycle: A conceptual dynamic structure]," MPRA Paper 102514, University Library of Munich, Germany.
    6. Pierre-André Chiappori & José Alberto Molina, 2019. "The intra-spousal balance of power within the family: cross-cultural evidence," Boston College Working Papers in Economics 983, Boston College Department of Economics.
    7. Ospina-Cartagena, Vanessa & García-Suaza, Andrés, 2020. "Unpaid work and gender gap patterns in Colombia," GLO Discussion Paper Series 686, Global Labor Organization (GLO).

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    More about this item

    Keywords

    household; collective models; labour supply; Latin America countries;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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