The shifters of intrahousehold decision-making in European countries

Abstract

This paper studies spouses’ intrahousehold decision-making, using unique information from the European Union Statistics on Income and Living Conditions special module on Intrahousehold Sharing of Resources. We build an index to measure the bargaining power of the wife in household decision-making in European countries and analyze how that index correlates with household demographic characteristics. We find cross-country differences in the values of this index, although estimates show that, in general, older, relatively more educated and working spouses with higher wages, have more power in intrahousehold decision-making. Furthermore, country-level conditions correlate with spouses’ bargaining power in household decision-making. The paper provides a direct empirical exploration of intrahousehold decision-making in a cross-country setting.