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Income Pooling and Household Division of Labor: Evidence from Danish Couples

Author

Listed:
  • Amuedo-Dorantes, Catalina

    (University of California, Merced)

  • Bonke, Jens

    (Rockwool Foundation Research Unit)

  • Grossbard, Shoshana

    (San Diego State University)

Abstract

If income pooling indicates primary earners' willingness to trade part of their income with spouses who earn less and work more in household production, then among specialized couples income pooling will be positively associated with the price of commercial domestic services, substitutes for household production. In line with our prediction, analyses of data from a unique Danish household survey show that complete income pooling is more frequent where commercial domestic services are more expensive.

Suggested Citation

  • Amuedo-Dorantes, Catalina & Bonke, Jens & Grossbard, Shoshana, 2010. "Income Pooling and Household Division of Labor: Evidence from Danish Couples," IZA Discussion Papers 5418, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp5418
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    References listed on IDEAS

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    Cited by:

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    2. Carole Bonnet & Enrica Maria Martino & Benoît Rapoport & Anne Solaz, 2023. "Wealth inequalities among seniors: the role of marital histories across cohorts," Review of Economics of the Household, Springer, vol. 21(3), pages 815-853, September.
    3. Bertocchi, Graziella & Brunetti, Marianna & Torricelli, Costanza, 2014. "Who holds the purse strings within the household? The determinants of intra-family decision making," Journal of Economic Behavior & Organization, Elsevier, vol. 101(C), pages 65-86.
    4. Ainhoa Herrarte & Julián Moral-Carcedo & Felipe Sáez, 2012. "The impact of childbirth on Spanish women’s decisions to leave the labor market," Review of Economics of the Household, Springer, vol. 10(3), pages 441-468, September.
    5. Grabka, Markus M. & Marcus, Jan & Sierminska, Eva, 2015. "Wealth Distribution within Couples," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 13(3), pages 459-486.
    6. 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.
    7. Tina Haussen, 2018. "Intra-Household Income Inequality and Preferences for Redistribution," Jena Economics Research Papers 2018-004, Friedrich-Schiller-University Jena.
    8. Charlotte Christiansen & Juanna Schröter Joensen & Jesper Rangvid, 2015. "Understanding The Effects Of Marriage And Divorce On Financial Investments: The Role Of Background Risk Sharing," Economic Inquiry, Western Economic Association International, vol. 53(1), pages 431-447, January.
    9. Namkee Ahn & Victoria Ateca-Amestoy & Arantza Ugidos, 2014. "Financial Satisfaction from an Intra-Household Perspective," Journal of Happiness Studies, Springer, vol. 15(5), pages 1109-1123, October.
    10. Tina Haussen, 2019. "Intra-household income inequality and preferences for redistribution," Review of Economics of the Household, Springer, vol. 17(2), pages 499-530, June.
    11. World Bank, 2011. "Work and Family : Latin American and Caribbean Women in Search of a New Balance [Trabajo & familia : mujeres de América Latina y el Caribe en busca de un nuevo equilibrio - Resumen ejecuivo (Vol. 2)]," World Bank Publications - Reports 12489, The World Bank Group.
    12. Miriam Beblo & Denis Beninger, 2012. "Do husbands and wives pool their incomes? Experimental evidence," Working Papers of BETA 2012-10, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.

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    Keywords

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    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure

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