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Bargaining or efficiency within the household? The case of Italy

Author

Listed:
  • AINA, Carmen

    (Università degli Studi del Piemonte Orientale)

  • MAZZOTTA, Fernanda

    (CELPE - Centre of Labour Economics and Economic Policy, University of Salerno - Italy)

  • PARISI, Lavinia

    (CELPE - Centre of Labour Economics and Economic Policy, University of Salerno - Italy)

Abstract

Two aspects play a role in the household decision-making, the efficiency and the bargaining power’s argument. The crucial difference between the two approaches is the expected influence of personal and partners’ wage. To investigate which of the two models hold, in the Italian context, we estimate an ordered probit model for five aspects of household decision-making. We use the Italian questionnaire of Statistics on Income and Living Conditions (It-Silc) 2010 as it provides a module on intra-household sharing of resources. Results show that in strategic control decisions, where the power argument should dominate the efficiency approach (i.e. decisions on durable goods, savings and other important decisions) the spouse/partner with higher wage is the household decision maker. For decision regarding executive management (i.e. decision on everyday shopping), the efficiency argument holds.

Suggested Citation

  • AINA, Carmen & MAZZOTTA, Fernanda & PARISI, Lavinia, 2014. "Bargaining or efficiency within the household? The case of Italy," CELPE Discussion Papers 130, CELPE - CEnter for Labor and Political Economics, University of Salerno, Italy.
    • Handle: RePEc:sal:celpdp:0130
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Financial management; Intra-household bargaining; Household production; Gender differences; Intra-household decision power; Family economics;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure

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