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Married Women's Labour Supply and Intra-Household Bargaining Power - Safoura Moeeni

Date & Time:
March 23, 2016 | 3:00 pm - 4:00 pm
Location:
SS 423
Speaker:
Safoura Moeeni

ABSTRACT: 

In some developing countries, labour force participation (LFP) of women is low and decreasing, despite an increase in education levels and decline in fertility rates. Such trends are different from those observed in many developed countries. This paper provides an explanation for the female labour supply puzzle, by estimating a household bargaining model using data from 2006 to 2013 Iranian Household Income and Expenditure. I build and estimate a structural model of education, marriage, fertility and labour supply in an intra-household collective decision framework, in which bargaining power is an endogenous variable. In the model, women can increase their bargaining power in the household by obtaining education.  The estimated model exhibits the features that are consistent with the data; women's LFP is an inverse U-shaped function of bargaining power. As a woman's bargaining power increases,  she participates more in the labour market. However, over a certain level of bargaining power, women are less likely to work outside the home. Moreover, the data shows bargaining power inequality in Iran has increased, so number of women with very low and very high level of bargaining power has increased. According to the results, these two groups are less likely to participate in labour market. Thus, women's LFP in Iran has decreased.

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