By Miriam Beblo
In this publication, time use habit inside families is modeled because the end result of a bargaining method among kin who cut price over family source allocation and the intrafamily distribution of welfare. In view of developments corresponding to emerging girl employment besides falling fertility premiums and lengthening divorce charges, a strategic element of lady employment is analyzed in a dynamic relatives bargaining framework. The department of housekeeping among spouses and the saw relaxation differential among men and women are investigated inside of non-cooperative bargaining settings. The versions constructed are confirmed empirically utilizing facts from the German Socio-Economic Panel and the German Time price range Survey.
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Extra info for Bargaining over Time Allocation: Economic Modeling and Econometric Investigation of Time Use within Families
The latter significantly affects labor supply behavior, in that the higher the proportion of women the more female and the less male labor supply, hence the lower female and the higher male leisure time results 20 . While the sociological literature has a long-standing tradition in the consideration of the impact of the power balance in a family on household outcomes, economists have only recently begun to analyze household behavior in the presence of power differentials. One example is the work of Simone Dobbelsteen and Peter Kooreman (1997) who argue that, if "the distribution of power between partners is reflected in the extent to which both partners' For further discussion of the empirical literature on the relation between divorce laws and female labor force participation see the empirical part of Chapter 4.
In their seminal contributions Marilyn Manser and Murray Brown (1980) as well as Marjorie McElroy and Mary Jean Horney (1981) applied Nash cooperative bargaining theory to household decision making. In these models the distribution of utility within households is determined by the feasible consumption set of the two partners and their outside options 23 which are the single-state utilities. g. an increase in income of one of the partners, will affect the household utility distribution towards that spouse's favor.
It is this insurance aspect that will be incorporated in the theoretical modeling and econometric estimation of female labor supply in the present chapter. In the conventional common preference or unitary model of the household (Becker 1965, Gronau 1973 and 1977) time allocation decisions of family members involve neither human capital considerations of job experience nor strategic bargaining aspects of individual control over financial resources. Instead individual labor supply is derived from the maximization of a household utility function subject to budget and time constraints.