Comparative Advantage in the Household: Should One Person Specialize in a Household’s Financial Matters?

Blain Pearson (), Thomas Korankye () and Hossein Salehi ()
Additional contact information
Blain Pearson: Kansas State University, Manhattan
Thomas Korankye: The University of Arizona
Hossein Salehi: California Lutheran University

Journal of Family and Economic Issues, 2023, vol. 44, issue 1, No 8, 114-124

Abstract: Abstract This study examines if households experience utility gains by selecting one of its members to specialize in its financial management. Utilizing data that are collected from the Health and Retirement Study, a variable measuring households’ level of financial specialization (HFS) is first constructed. The HFS variable is examined for its association with household utility, measured in this study as financial satisfaction, income satisfaction, and life satisfaction. The evidence provided strongly indicates that a household that selects one of its members to specialize in its financial management experiences utility gains.

Keywords: Financial satisfaction; Household economics; Household finances; Household specialization (search for similar items in EconPapers)
JEL-codes: D13 D16 (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1007/s10834-021-09807-y

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