Intra-household interaction in a nuclear family: A utility-maximizing approach

Abstract

This paper investigates the joint resource allocation of households using a utility-maximizing model. The joint time allocation model is formulated, from which a nonlinear Tobit model is derived. The model parameters are estimated using empirical data collected through household time allocation surveys held in 2003 in Tokyo and Toyama, Japan. Four models – a weekday model and a weekend day model for Tokyo and Toyama each – are estimated. The empirical analysis reveals the common characteristics between the two cities – with respect to the child’s gender; the husband’s weekly non-working days, allowance, and job; and the wife’s age and job – that significantly influence the household’s welfare. The empirical analysis also reveals different characteristics between the two cities. First, the greater the number of children in a household, the higher is the significance of the husband and wife’s joint out-of-home leisure activity on a weekday for household welfare in Tokyo, and the lower is the same in Toyama. Second, the greater the non-working days of the husbands, the lower is the significance of their individual out-of-home leisure activities on a weekday for household welfare in Tokyo and the higher is the same in Toyama. These characteristics may reflect the local’s attitudes in intra-household interaction.