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Efficient Labor Supply for Latin Families: Is the Intra-Household Bargaining Power Relevant?

Author

Listed:
  • Campaña, Juan Carlos

    (University of Zaragoza)

  • Gimenez-Nadal, José Ignacio

    (University of Zaragoza)

  • Molina, José Alberto

    (University of Zaragoza)

Abstract
This paper analyzes the efficient labor supply of male and female workers in Latin American countries employing the collective model framework (Chiappori et al.,2002). Using data from Time Use Surveys for Mexico (2009) and Colombia (2012), we find evidence of Pareto-efficient labor supply decisions within households, as the collective rationality is not rejected in the two countries. We find that higher female wages are related to more labor market hours of female workers, and male workers show an altruistic behavior towards females with the increase of their labor income. Sex ratio are related to transfers of additional income from male to female workers in Colombia, which sheds light on the relevance of distribution factors in the internal decision process of the couple. Our results suggest that the distribution of bargaining power within the household is an important factor that should be considered when analyzing household decisions.

Suggested Citation

  • Campaña, Juan Carlos & Gimenez-Nadal, José Ignacio & Molina, José Alberto, 2018. "Efficient Labor Supply for Latin Families: Is the Intra-Household Bargaining Power Relevant?," IZA Discussion Papers 11695, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp11695
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    2. Chen, Jiahui & Liao, Hua & Zhang, Tong, 2024. "Empowering women substantially accelerates the household clean energy transition in China," Energy Policy, Elsevier, vol. 187(C).
    3. Olivier Bargain & Damien Echevin & Nicolas Moreau & Adrien Pacifico, 2019. "Inefficient Couples: Non-minimization of the Tax Burden among French Cohabiting Couples," Working Papers hal-02365239, HAL.
    4. Pierre André Chiappori & José Ignacio Gimenez Nadal & José Alberto Molina & Alexandros Theloudis & Jorge Velilla, 2020. "Intrahousehold Commitment and Intertemporal Labor Supply," LISER Working Paper Series 2020-11, Luxembourg Institute of Socio-Economic Research (LISER).
    5. Claver Sanz, Raúl, 2022. "La transmisión intergeneracional de educación: evidencia en América Latina (1870 – 2010) [The Intergenerational Transmission of Education: Evidence from Latin America (1870 - 2010)]," MPRA Paper 111434, University Library of Munich, Germany.
    6. Olivier Bargain & Damien Echevin & Nicolas Moreau & Adrien Pacifico, 2019. "Inefficient Couples: Non-minimization of the Tax Burden among French Cohabiting Couples," TEPP Working Paper 2019-05, TEPP.
    7. Amábile Florencia, 2023. "Collective Labor Supply, Divisions of Domestic Work and Intra-household Bargaining," Asociación Argentina de Economía Política: Working Papers 4624, Asociación Argentina de Economía Política.
    8. Donni, Olivier & Molina, José Alberto, 2018. "Household Collective Models: Three Decades of Theoretical Contributions and Empirical Evidence," IZA Discussion Papers 11915, Institute of Labor Economics (IZA).
    9. Echeverría, Lucía, 2020. "Modelos colectivos de consumo y distribución intra-hogar. Teoría y aplicaciones," Nülan. Deposited Documents 3832, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    10. Ibarra, Helena & Velilla, Jorge, 2021. "Oferta laboral familiar y negociación intrafamiliar en España: Un test del modelo colectivo [Household labor supply and intrahousehold bargaining: An empirical test of the collective model]," MPRA Paper 108080, University Library of Munich, Germany.
    11. Bautista Lacambra, Sergio, 2020. "Household labor supply: Collective results for certain developed countries," MPRA Paper 101514, University Library of Munich, Germany.
    12. Chiappori, Pierre-André & Molina, José Alberto & Gimenez-Nadal, José Ignacio & Velilla, Jorge, 2019. "Intertemporal Labor Supply and Intra-Household Commitment," IZA Discussion Papers 12353, Institute of Labor Economics (IZA).
    13. Bautista-Lacambra, Sergio, 2020. "El ciclo vital en la familia:una estructura conceptual dinámica [A family's life-cycle: A conceptual dynamic structure]," MPRA Paper 102514, University Library of Munich, Germany.
    14. Pierre-André Chiappori & José Alberto Molina, 2019. "The intra-spousal balance of power within the family: cross-cultural evidence," Boston College Working Papers in Economics 983, Boston College Department of Economics.
    15. Ospina-Cartagena, Vanessa & García-Suaza, Andrés, 2020. "Unpaid work and gender gap patterns in Colombia," GLO Discussion Paper Series 686, Global Labor Organization (GLO).

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    More about this item

    Keywords

    household; collective models; labour supply; Latin America countries;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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