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The Changing Intra-Household Resource Allocation in Russia

CIRPEE Working Paper No. 08-11

41 Pages Posted: 18 Jul 2008  

Guy Lacroix

Laval University - Département d'Économique; IZA Institute of Labor Economics

Natalia Radtchenko

Université Paris I Panthéon-Sorbonne; French National Center for Scientific Research (CNRS)

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Date Written: July, 17 2008

Abstract

During the transition toward a market economy, Russian workers have had to face important structural changes in the labour market as well as dramatic changes in their real earnings. In the process, the wage gap between men and women has varied wildly over that period. In recent years, young women have embraced professional careers, are more mobile on the labour market, and tend to delay the birth of their first child.

All these trends are likely to influence intra-household relations and consequently the family decision process. To investigate this matter, we estimate a household collective labour supply model. We generalize the specification so as to allow the sharing rule to change in a discrete manner between the pre and post 1998 financial crisis periods. The parameters of the sharing-rule indicate that the households have shifted to a new equilibrium in the post-1998 period. Indeed, husbands have become more egotistic and wives more altruistic: an increase in their relative wage translates into a smaller/larger transfer to their spouse.

Keywords: Collective model, sharing rule, Russian economic crisis

JEL Classification: D1, J22, C5

Suggested Citation

Lacroix, Guy and Radtchenko, Natalia, The Changing Intra-Household Resource Allocation in Russia (July, 17 2008). CIRPEE Working Paper No. 08-11. Available at SSRN: https://ssrn.com/abstract=1162167 or http://dx.doi.org/10.2139/ssrn.1162167

Guy Lacroix (Contact Author)

Laval University - Département d'Économique ( email )

2325 Rue de l'Université
Ste-Foy, Quebec G1K 7P4 G1K 7P4
Canada
418-656-2024 (Phone)
418-656-7798 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Natalia Radtchenko

Université Paris I Panthéon-Sorbonne ( email )

17, rue de la Sorbonne
Paris, IL 75005
France

French National Center for Scientific Research (CNRS)

3, rue Michel-Ange
Paris cedex 16, 75794
France

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