Do Husbands and Wives Pool Their Resources? Evidence from the United Kingdom Child Benefit

Common preference models of family behavior imply income pooling, a restriction on family demand functions such that only the sum of husband's income and wife's income affects the allocation of goods and time. Testing the pooling hypothesis is difficult because most family income sources a...

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Veröffentlicht in:The Journal of human resources 1997-07, Vol.32 (3), p.463-480
Hauptverfasser: Lundberg, Shelly J., Pollak, Robert A., Wales, Terence J.
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container_title The Journal of human resources
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creator Lundberg, Shelly J.
Pollak, Robert A.
Wales, Terence J.
description Common preference models of family behavior imply income pooling, a restriction on family demand functions such that only the sum of husband's income and wife's income affects the allocation of goods and time. Testing the pooling hypothesis is difficult because most family income sources are not exogenous to the allocations being analyzed. In this paper, we present an alternative test based on a "natural experiment"-a policy change in the United Kingdom that transferred a substantial child allowance to wives in the late 1970s. Using Family Expenditure Survey data, we find strong evidence that a shift toward greater expenditures on women's clothing and children's clothing relative to men's clothing coincided with this income redistribution.
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Using Family Expenditure Survey data, we find strong evidence that a shift toward greater expenditures on women's clothing and children's clothing relative to men's clothing coincided with this income redistribution.</abstract><cop>Madison</cop><pub>University of Wisconsin Press</pub><doi>10.2307/146179</doi><tpages>18</tpages></addata></record>
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subjects Bargaining
Child benefit
Child welfare
Children
Children & youth
Childrens clothing
Consumer behavior
Consumer spending
Consumption
Cost control
Demand curves
Dining Facilities
Earnings
Economic models
Economic Research
Evidence
Expenditures
Experiments
Families & family life
Family income
Finance
Households
Human resources
Husband and wife
Husbands
Hypotheses
Income distribution
Income redistribution
Income taxes
Labor supply
Married couples
Married people
Meals
Men
Personal finance
Poolings of interest
Preferences
Prices
Resource allocation
Resources
Restaurants
Sexes
Sharing
Spouses
Studies
Tax benefits
Transfer Policy
Unearned income
United Kingdom
Wage rates
Wages
Wives
title Do Husbands and Wives Pool Their Resources? Evidence from the United Kingdom Child Benefit
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