Abstract
Household labour supply models, which assume separate utility functions for the two principle household members, can be categorized as either non-cooperative or Pareto efficient bargaining games. In this paper a revealed preference non-parametric test is applied to UK family expenditure data to determine why some data observations are consistent with a Pareto efficient outcome. The empirical findings support the view that there are costs of bargaining within marriage and that they are typically related to the cost of female time. The implication being that as the cost of female time increases so do the transaction costs associated with a bargaining outcome.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.