How Does Childbirth Alter Intrahousehold Resource Allocation?: Evidence from Japan
University of Tsukuba Department of Social Systems and Management Discussion Paper Series No. 1269
46 Pages Posted: 1 Dec 2011
Date Written: May 2011
Exploiting unique panel data that include direct measurements of resource allocation within households, we investigate the impact of childbirth on intrahousehold allocation for married Japanese couples. Based on a collective model of the household, and assuming weak separability, we develop reduced-form and structural-form estimation equations that allow us to focus on private goods to track the changes in intrahousehold resource allocation. We find one additional child is associated with a reduction in the wife's private expenditure share of at least two percentage points. This is probably because she substitutes more say in decisions on children for her private expenditure share.
Keywords: Childbirth, Collective model, Intrahousehold allocation, Relative risk aversion, Japan
JEL Classification: D11, D12, D13, J12
Suggested Citation: Suggested Citation