Family‐type public goods and intra‐household decision‐making by co‐resident South African couples

Sevias Guvuriro and Frederik Booysen

Review of Development Economics, 2021, vol. 25, issue 3, 1629-1647

Abstract: The current study examines sources of bargaining power that inform financial decision‐making processes within co‐resident couples and determines how bargaining power and decision‐making impact on family‐type public goods expenditure. The study uses South Africa's National Income Dynamics Study, which offers a direct measure of financial decision‐making responsibility. In terms of analysis, probit regression models are used to establish socioeconomic determinants of decision‐making for female partners in co‐resident couples, while ordinary least squares linear regression models are employed to determine the extent to which financial decision‐making responsibility and power influence expenditure on family‐type public goods by households. There is evidence of the relevance of economic factors in explaining financial decision‐making as postulated by the resource theory. Households with wives who gain a decision‐making role spend more on family‐type public goods. The findings suggest that policy has to focus on gender mainstreaming and empowerment, which would enhance the decision‐making role of women within co‐resident couples.

Date: 2021
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