Intrahousehold allocation of financial resources: evidence from South Korean individual bank accounts

Abstract

Using individual bank account data from South Korea, where joint accounts are rare and the legal system emphasizes the individuality of financial transactions, we examine the distribution of financial resources between spouses within households. We find that each member’s share of household savings depends on the balance of bargaining power. We also find that the wife’s bargaining power increases total household savings. The findings deviate from the unitary model.