Married women’s labor force participation and intra-household bargaining power

Safoura Moeeni

Empirical Economics, 2021, vol. 60, issue 3, No 13, 1448 pages

Abstract: Abstract I examine the effects of education on the labor force participation (LFP) of married women in an intra-household collective decision framework with imperfectly transferable utility and endogenous bargaining powers. In this case, individuals’ pre-marriage choices, including educational choices and matching on the marriage market, determine their bargaining power. Education has thus monetary (in the marriage and labor markets) and non-monetary (as a normal good) types of return. The estimated model exhibits the features that are consistent with the data. First, the female’s bargaining power increases when a woman is more educated relative to her spouse. Second, women’s LFP is an inverse U-shaped function of bargaining power. As a woman’s bargaining power increases, she participates more in the labor market. However, over a certain level of bargaining power, women are less likely to work outside the home. Thus, this paper identifies a new channel through which education can affect LFP.

Keywords: Intra-Household Decision-Making; Collective Approach; Labor Force Participation; Women (search for similar items in EconPapers)
JEL-codes: D15 J12 J2 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (4)

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DOI: 10.1007/s00181-019-01800-7

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