Women’s Endogenous Bargaining Power and Fertility Preferences: A Collective Model Approach in Pakistan

Abstract

This study introduces a collective model of fertility decisions (where preferences towards children may differ between couples), by using the Pakistan Demographic and Health Survey (2017-18) data with an instrumental variables (IV) approach. The age and occupational difference between spouses, the wife’s cash earnings relative to husband, wealth quintiles, the beating of a wife by the husband is justified, media exposure, current use of any contraceptive have shown direct and positive impacts on women’s bargaining power. Accounting for the endogeneity of bargaining power, age, education, and occupational difference and their square terms and wife’s cash earnings relative to husband’s cash earnings may use as instruments. The results of IV estimation showed that women’s bargaining power, wealth quintiles, beating of wife by husband are justified, media exposure, current use of any contraceptive, and types of method (modern) came out as highly significant determinants in reducing the husband’s fertility preferences. The findings recommend that improving women’s bargaining power, educational attainment, exposure to the media, and contraceptive practice for achieving desired fertility preferences, are some of the substantial challenges on which policymakers should pay careful consideration in Pakistan.