Bargaining over Time Allocation: Economic Modeling and by Miriam Beblo

By Miriam Beblo

In this ebook, time use habit inside families is modeled because the end result of a bargaining technique among kin who cut price over loved ones source allocation and the intrafamily distribution of welfare. In view of tendencies resembling emerging woman employment besides falling fertility premiums and lengthening divorce charges, a strategic element of girl employment is analyzed in a dynamic kinfolk bargaining framework. The department of home tasks among spouses and the saw relaxation differential among men and women are investigated inside non-cooperative bargaining settings. The types constructed are validated empirically utilizing facts from the German Socio-Economic Panel and the German Time price range Survey.

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Additional resources for Bargaining over Time Allocation: Economic Modeling and Econometric Investigation of Time Use within Families

Example text

In such a setting the partners' outside options are no longer exogenous, instead they are endogenously determined by the preceding period's time allocation. An individual's decision to supply labor is made allowing for the accompanying impact on her future conflict payoff. The partners' relative bargaining powers therefore directly depend on past time use decisions and the resulting human capital accumulation. Sequential non-cooperation means binding contracts between the periods are not possible.

Or, in other words, the differing effects from investments in marketspecific human capital and investments in family-specific human capital on bargaining power counter-effect the advantages of specialization. e. the marginal output of time spent in market production as opposed to time spent in household production, even different wage structures of men and women do not necessarily lead to complete specialization as would be the case in traditional theory. Instead, the interior solution of both partner's time being allocated to all different time uses, to paid as well as unpaid work in particular, that one observes in reality can now be explained.

Hence, education exceeding the optimal level would have no effect on the individual bargaining position. As opposed to the human capital model by Lehrer and Nerlove (1981) where the optimal level of investment in human capital is a function of the extent to which this capital is utilized in the subsequent stages of life, here the human capital endowment serves for improving the individual bargaining position regardless of its actual utilization. In other words, the human capital endowment is employed rather implicitly than explicitly in the time allocation decision.

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