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

See all articles by Tomoki Fujii

Tomoki Fujii

Singapore Management University - School of Economics

Ryuichiro Ishikawa

Waseda University-SILS

Multiple version iconThere are 2 versions of this paper

Date Written: May 2011

Abstract

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

Fujii, Tomoki and Ishikawa, Ryuichiro, How Does Childbirth Alter Intrahousehold Resource Allocation?: Evidence from Japan (May 2011). University of Tsukuba Department of Social Systems and Management Discussion Paper Series No. 1269. Available at SSRN: https://ssrn.com/abstract=1966325 or http://dx.doi.org/10.2139/ssrn.1966325

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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