The More Kids, the Less Mom's Divvy: Impact of Childbirth on Intrahousehold Resource Allocation

SMU Economics and Statistics Working Paper No. 20-2008

45 Pages Posted: 16 Oct 2008 Last revised: 26 Dec 2012

See all articles by Tomoki Fujii

Tomoki Fujii

Singapore Management University - School of Economics

Ryuichiro Ishikawa

Waseda University-SILS

Date Written: October 1, 2008

Abstract

We investigate how childbirth affects intrahousehold resource allocation for married Japanese couples. We develop reduced-form and structural-form specifications from a unified theoretical framework. Under a weak set of assumptions, we can focus on private goods to track the changes in intrahousehold resource allocation. Our estimation results show that the allocation of resources within household tend to move to the disadvantage of women after a childbirth. One additional child is associated with at least 2.6 percentage points decrease in women's private expenditure share. Our estimation results reject the income-pooling hypothesis, and show that women are more risk averse than men.

Keywords: Childbirth, Bargaining, Intrahousehold allocation, Relative risk aversion, Japan

JEL Classification: D11, D12, D13, J12

Suggested Citation

Fujii, Tomoki and Ishikawa, Ryuichiro, The More Kids, the Less Mom's Divvy: Impact of Childbirth on Intrahousehold Resource Allocation (October 1, 2008). SMU Economics and Statistics Working Paper No. 20-2008. Available at SSRN: https://ssrn.com/abstract=1284289 or http://dx.doi.org/10.2139/ssrn.1284289

Tomoki Fujii (Contact Author)

Singapore Management University - School of Economics ( email )

90 Stamford Road
178903
Singapore
+6568280279 (Phone)
+6568280833 (Fax)

HOME PAGE: http://www.mysmu.edu/faculty/tfujii/

Ryuichiro Ishikawa

Waseda University-SILS ( email )

Shinjuku, Tokyo 1658050
Japan

HOME PAGE: http://www.f.waseda.jp/r.ishikawa/

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