Determinants and Consequences of Bargaining Power in Households

TitleDeterminants and Consequences of Bargaining Power in Households
Publication TypeReport
Year of Publication2006
AuthorsFriedberg, L, Webb, A
InstitutionBoston College, Center for Retirement Research at Boston College
Call Numberwp_2006/CRRwp2006-13.pdf
KeywordsAdult children, End of life decisions
Abstract

A growing literature offers indirect evidence that the distribution of bargaining power within a household influences decisions made by the household. These results undermine the notion that a household can be treated as a unitary decision maker. The indirect evidence links household outcomes to variables that are assumed to influence the distribution of bargaining power within the household. In this paper, we have data on whether a husband or wife in the Health and Retirement Study has the final say when making major decisions in a household. We use this variable to analyze determinants and some consequences of bargaining power. Our analysis overcomes endogeneity problems arising in many earlier studies and constitutes the missing link confirming the importance of household bargaining models.

URLhttp://www.bc.edu//centers/crr
Endnote Keywords

household behavior/Decision Making

Endnote ID

16660

Citation Key5657