Income Pooling and Household Division of Labor: Evidence from Danish Couples

24 Pages Posted: 18 Jan 2011

See all articles by Catalina Amuedo-Dorantes

Catalina Amuedo-Dorantes

San Diego State University - Department of Economics; IZA Institute of Labor Economics

Jens Bonke

Rockwool Foundation Research Unit

Shoshana Amyra Grossbard

San Diego State University - Department of Economics; IZA Institute of Labor Economics; CESifo (Center for Economic Studies and Ifo Institute)

Abstract

If income pooling indicates primary earners' willingness to trade part of their income with spouses who earn less and work more in household production, then among specialized couples income pooling will be positively associated with the price of commercial domestic services, substitutes for household production. In line with our prediction, analyses of data from a unique Danish household survey show that complete income pooling is more frequent where commercial domestic services are more expensive.

Keywords: home production, income pooling, household finance, domestic services

JEL Classification: D13, D14, J12

Suggested Citation

Amuedo-Dorantes, Catalina and Bonke, Jens and Grossbard, Shoshana, Income Pooling and Household Division of Labor: Evidence from Danish Couples. IZA Discussion Paper No. 5418. Available at SSRN: https://ssrn.com/abstract=1741606

Catalina Amuedo-Dorantes (Contact Author)

San Diego State University - Department of Economics ( email )

5500 Campanile Drive
San Diego, CA 92182
United States
619-594-1663 (Phone)
619-594-5062 (Fax)

IZA Institute of Labor Economics

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

Jens Bonke

Rockwool Foundation Research Unit ( email )

Sejroegade 11
DK-2100 Copenhagen
Denmark

Shoshana Grossbard

San Diego State University - Department of Economics ( email )

5500 Campanile Drive
San Diego, CA 92182
United States

IZA Institute of Labor Economics

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

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

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