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Relative Income and the Intra-household Division of labour: Evidence from a Matched Spousal Panel

Viet Lien Le (), Tu Anh Bui (), Anh Nguyen and Ngoc-Minh Nguyen ()
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Viet Lien Le: Development and Policies Research Center (DEPOCEN), Suite 305 - 307, 12 Trang Thi Street, Hoan Kiem, Hanoi
Tu Anh Bui: Development and Policies Research Center (DEPOCEN), Suite 305 - 307, 12 Trang Thi Street, Hoan Kiem, Hanoi
Ngoc-Minh Nguyen: Development and Policies Research Center (DEPOCEN), Suite 305 - 307, 12 Trang Thi Street, Hoan Kiem, Hanoi

No 196, Working Papers from Development and Policies Research Center (DEPOCEN), Vietnam

Abstract: This paper examines the intra-household allocation of unpaid labour in Vietnam, a rapidly transitioning economy where rising female employment coexists with long-standing traditional norms. Using a unique matched spousal panel (2018–2020), we develop a joint decision-making framework to test whether relative income serves as a structural tool for bargaining. By estimating a Seemingly Unrelated Regressions system, we find that a 10 percentage point increase in the wife’s relative income significantly reduces her domestic burden, matched by a symmetrical increase in the husband’s contribution. Disaggregated results show that economically empowered women use this leverage to substitute away from both routine chores and high-burden caregiving tasks. Crucially, the relationship between relative income and housework remains strictly linear, we find no evidence of gender deviance neutralisation. These findings suggest that intra-household time allocation is fundamentally driven by economic rationality, implying higher earnings for women provide the necessary power to reduce domestic inequality.

Keywords: relative income; intra-household bargaining; joint decision-making model; economic modelling; time allocation; unpaid labour; seemingly unrelated regressions (search for similar items in EconPapers)
Pages: 23 pages
Date: 2025, Revised 2026-06-01
New Economics Papers: this item is included in nep-gth, nep-lab, nep-sea and nep-tra
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