IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this paper

Do husbands and wives pool their incomes? Experimental evidence

  • Miriam Beblo
  • Denis Beninger
Registered author(s):

    In this paper, we propose a direct test of income pooling within couples, which yields new insight into intra-household bargaining behaviour. For this purpose, we performed a five-round experiment with 95 real, established couples in Germany. In each round, the couples received the same amount of money, though with differing allocations between the spouses, to make consumption choices for private goods. We observed the choices to depend strongly on the spouses’ relative resources for about half the sample and interpret this as a rejection of the income pooling hypothesis. Moreover, non-pooling was positively related with the homogeneity of the spouses’ characteristics (in terms of age, education, working hours) and negatively with their average education and income levels.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://www.beta-umr7522.fr/productions/publications/2012/2012-10.pdf
    Download Restriction: no

    Paper provided by Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg in its series Working Papers of BETA with number 2012-10.

    as
    in new window

    Length:
    Date of creation: 2012
    Date of revision:
    Handle: RePEc:ulp:sbbeta:2012-10
    Contact details of provider: Postal:
    PEGE. 61, Aven. de la Forêt-Noire 67000 Strasbourg

    Phone: +33 3 68 85 20 69
    Fax: +33 3 68 85 20 70
    Web page: http://www.beta-umr7522.fr/
    Email:


    More information through EDIRC

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    as in new window
    1. Chiappori, Pierre-Andre, 1992. "Collective Labor Supply and Welfare," Journal of Political Economy, University of Chicago Press, vol. 100(3), pages 437-67, June.
    2. Vegard Iversen & Cecile Jackson & Bereket Kebede & Alistair Munro & Arjan Verschoor, 2006. "What’s love got to do with it ? An experimental test of household models in East Uganda," CSAE Working Paper Series 2006-01, Centre for the Study of African Economies, University of Oxford.
    3. André Palma & Nathalie Picard & Anthony Ziegelmeyer, 2011. "Individual and couple decision behavior under risk: evidence on the dynamics of power balance," Theory and Decision, Springer, vol. 70(1), pages 45-64, January.
    4. Laisney, François & Beninger, Denis & Beblo, Miriam, 2003. "Welfare Analysis of Fiscal Reforms: Does the Representation of the Family Decision Process Matter? Evidence for Germany," ZEW Discussion Papers 03-31, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    5. Deaton, A., 1988. "Price Elasticities From Survey Data: Extensions And Indonesian Results," Papers 138, Princeton, Woodrow Wilson School - Development Studies.
    6. Carlsson, Fredrik & Martinsson, Peter & Qin, Ping & Sutter, Matthias, 2009. "Household Decision Making and the Influence of Spouses' Income, Education, and Communist Party Membership: A Field Experiment in Rural China," IZA Discussion Papers 4139, Institute for the Study of Labor (IZA).
    7. Robinson, Jonathan, 2008. "Limited Insurance Within the Household: Evidence from a Field Experiment in Kenya," MPRA Paper 8314, University Library of Munich, Germany.
    8. Browning, M. & Chiappori, P.A., 1994. "Efficient Intra-Household allocations: A General Characterization and Empirical Tests," DELTA Working Papers 94-16, DELTA (Ecole normale supérieure).
    9. Manser, Marilyn & Brown, Murray, 1980. "Marriage and Household Decision-Making: A Bargaining Analysis," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 21(1), pages 31-44, February.
    10. Jennifer Ward-Batts, 2008. "Out of the Wallet and into the Purse: Using Micro Data to Test Income Pooling," Journal of Human Resources, University of Wisconsin Press, vol. 43(2), pages 325-351.
    11. Chiappori, Pierre-Andre, 1988. "Rational Household Labor Supply," Econometrica, Econometric Society, vol. 56(1), pages 63-90, January.
    12. Kooreman, P. & Kapteyn, A.J., 1989. "On the empirical implementation of some game theoretic models of household labor supply," Discussion Paper 1989-56, Tilburg University, Center for Economic Research.
    13. Martin Browning & Pierre-André Chiappori & Valérie Lechene, 2005. "Distributional Effects in Household Models: Separate Spheres and Income Pooling," CAM Working Papers 2005-08, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
    14. Phipps, S.A. & Burton, P.S., 1992. "What's Mine is Yours?: The Influence of Male and Female Incomes on Patterns of Household Expenditure," Department of Economics at Dalhousie University working papers archive 92-12, Dalhousie, Department of Economics.
    15. Thomas, D., 1989. "Intra-Household Resource Allocation: An Inferential Approach," Papers 586, Yale - Economic Growth Center.
    16. Vegard Iversen & Cecile Jackson & Bereket Kebede & Alistair Munro & Arjan Verschoor, 2010. "Do spouses realise cooperative gains? Experimental evidence from rural Uganda," Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS) 10-02, School of Economics, University of East Anglia, Norwich, UK..
    17. Apps, Patricia F. & Rees, Ray, 1988. "Taxation and the household," Journal of Public Economics, Elsevier, vol. 35(3), pages 355-369, April.
    18. Cochard François & Couprie Helene & Hopfensitz Astrid, 2009. "Do Spouses Cooperate? And If Not: Why?," THEMA Working Papers 2009-10, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    19. Ian Bateman & Alistair Munro, 2005. "An Experiment on Risky Choice Amongst Households," Economic Journal, Royal Economic Society, vol. 115(502), pages C176-C189, 03.
    20. Claude d’Aspremont & Rodolphe Dos Santos Ferreira, 2009. "Household behavior and individual autonomy," Working Papers of BETA 2009-17, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    21. Orazio Attanasio & Valérie Lechene, 2002. "Tests of Income Pooling in Household Decisions," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 5(4), pages 720-748, October.
    22. James Banks & Richard Blundell & Arthur Lewbel, 1997. "Quadratic Engel Curves And Consumer Demand," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 527-539, November.
    23. Browning, Martin & Meghir, Costas, 1991. "The Effects of Male and Female Labor Supply on Commodity Demands," Econometrica, Econometric Society, vol. 59(4), pages 925-51, July.
    24. Amuedo-Dorantes, Catalina & Bonke, Jens & Grossbard, Shoshana, 2010. "Income Pooling and Household Division of Labor: Evidence from Danish Couples," IZA Discussion Papers 5418, Institute for the Study of Labor (IZA).
    25. Munro, Alistair & Bateman, Ian J. & McNally, Tara, 2008. "The family under the microscope: an experiment testing economic models of household choice," MPRA Paper 8974, University Library of Munich, Germany.
    26. Gustavo J. Bobonis, 2009. "Is the Allocation of Resources within the Household Efficient? New Evidence from a Randomized Experiment," Journal of Political Economy, University of Chicago Press, vol. 117(3), pages 453-503, 06.
    27. Lundberg, S. & Pollak, R.A., 1991. "Separate Spheres Bargaining and the Marriage Market," Discussion Papers in Economics at the University of Washington 91-08, Department of Economics at the University of Washington.
    28. Rees, Ray, 1988. "Taxation and the Household," Munich Reprints in Economics 3411, University of Munich, Department of Economics.
    29. Jens Bonke & Hans Uldall-Poulsen, 2007. "Why do families actually pool their income? Evidence from Denmark," Review of Economics of the Household, Springer, vol. 5(2), pages 113-128, June.
    30. Shelly J. Lundberg & Robert A. Pollak & Terence J. Wales, 1997. "Do Husbands and Wives Pool Their Resources? Evidence from the United Kingdom Child Benefit," Journal of Human Resources, University of Wisconsin Press, vol. 32(3), pages 463-480.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:ulp:sbbeta:2012-10. 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: ()

    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.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 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.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.