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Specialization in the Bargaining Family

Author

Listed:
  • Raphaela Hyee

    (Queen Mary, University of London)

  • Julio R. Robledo

    (University of Nottingham)

Abstract

We develop a two period family decision making model in which spouses bargain over their contributions to a family public good and the distribution of private consumption. In contrast to most models in the literature, specialization within the couple emerges endogenously from the production of the public good, and is not caused by exogenous differences between the spouses. Increasing marginal benefits of labour market experience make specialization efficient, even if both spouses have equal market and household productivities on the outset. If spouses are not able to enter into a binding contract governing the distribution of private consumption in the second period, the spouse specialized in market labour cannot commit to compensate the other spouse for foregone investments in earnings power. As a consequence, this spouse may withdraw part of his/her contribution and the provision level of the household good is likely to be inefficiently low.

Suggested Citation

  • Raphaela Hyee & Julio R. Robledo, 2009. "Specialization in the Bargaining Family," Working Papers 640, Queen Mary University of London, School of Economics and Finance.
  • Handle: RePEc:qmw:qmwecw:wp640
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    File URL: http://www.econ.qmul.ac.uk/media/econ/research/workingpapers/archive/wp640.pdf
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    References listed on IDEAS

    as
    1. Muthoo,Abhinay, 1999. "Bargaining Theory with Applications," Cambridge Books, Cambridge University Press, number 9780521576475, April.
    2. Steinar Vagstad, 2001. "On private incentives to acquire household production skills," Journal of Population Economics, Springer;European Society for Population Economics, vol. 14(2), pages 301-312.
    3. Schönberg, Uta & Ludsteck, Johannes, 2007. "Maternity Leave Legislation, Female Labor Supply, and the Family Wage Gap," IZA Discussion Papers 2699, Institute for the Study of Labor (IZA).
    4. Konrad, Kai A & Lommerud, Kjell Erik, 1995. " Family Policy with Non-cooperative Families," Scandinavian Journal of Economics, Wiley Blackwell, vol. 97(4), pages 581-601, December.
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    Cited by:

    1. Alexander Kemnitz & Marcel Thum, 2015. "Gender Power, Fertility, and Family Policy," Scandinavian Journal of Economics, Wiley Blackwell, vol. 117(1), pages 220-247, January.

    More about this item

    Keywords

    Family bargaining; Specialization; Private provision of public goods;

    JEL classification:

    • D19 - Microeconomics - - Household Behavior - - - Other
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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