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Happily ever after? Intrahousehold bargaining and the distribution of utility within marriage

Author

Listed:
  • Dirk Bethmann

    (Department of Economics, Korea University, Seoul, Republic of Korea)

  • Robert Rudolf

    (Division of International Studies, Korea University, Seoul, Republic of Korea)

Abstract
Using a rich longitudinal data set of married couples from the Korean Labor and Income Panel Study (KLIPS), this article seeks to uncover the relationship between intrahousehold bargaining and the distribution of experienced utility within marriage. Providing an empirical test of the cooperative bargaining model, we confirm both substantial gains from marriage and the importance of the exogenous threat point in the distribution of happiness within the household. In particular, we find that the higher a partner¡¯s relative predicted earnings outside of marriage, the higher her/ his relative gains from marriage. In addition, this study reveals an asymmetry between women and men in older couples: men on average are endowed with a lower threat point utility, yet secure higher returns from marriage. This is likely to be due to social norms and prescribed gender roles which are more prevalent within the older generation.

Suggested Citation

  • Dirk Bethmann & Robert Rudolf, 2015. "Happily ever after? Intrahousehold bargaining and the distribution of utility within marriage," Discussion Paper Series 1503, Institute of Economic Research, Korea University.
    • Handle: RePEc:iek:wpaper:1503
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    File URL: http://econ.korea.ac.kr/~ri/WorkingPapers/w1503.pdf
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    Cited by:

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    2. Rudolf, Robert & Wang, Shun & Wu, Fengyu, 2023. "The Arab Spring, a setback for gender equality? Evidence from the Gallup World Poll," Journal of Asian Economics, Elsevier, vol. 84(C).
    3. Grossbard, Shoshana, 2016. "Marriage and Marriage Markets," IZA Discussion Papers 10312, Institute of Labor Economics (IZA).
    4. Teresa Perry, 2024. "Why Don’t You Leave? A Household Bargaining Model with a Household Preference of Addiction," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 50(3), pages 307-336, June.
    5. Eiji Yamamura & Fumio Ohtake, 2023. "Family Structure, Gender and Subjective Well-being: Effect of Child ren before and after COVID 19 in Japan," Papers 2312.04411, arXiv.org.
    6. Aistov, Andrey, 2019. "Happy together: A regression discontinuity approach," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 53, pages 73-99.
    7. O.S. Kuljamina & V.P. Leonova & V.A. Vishnyakova, 2018. "Unconditional Demand based on Information Networks," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 726-734.

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    More about this item

    Keywords

    Intrahousehold bargaining; Marriage; Happiness; Gender asymmetry; Generation effect;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D10 - Microeconomics - - Household Behavior - - - General
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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