Women's Employment, Intra-Household Bargaining, and Distribution: A Two-Sector Analysis

Oxford Economic Papers, Vol. 52, Issue 4, October 2000

Posted: 7 Jul 2001

See all articles by Indraneel Dasgupta

Indraneel Dasgupta

Durham University - Department of Economics and Finance; IZA Institute of Labor Economics

Abstract

This paper investigates the intra-household impact of an expansion in employment opportunities for women in a dual labor market, when the informal sector functions as a gateway to the formal sector. We use a variant of the Harris-Todaro framework with two-period overlapping generations to model this economy. Labor allocation decisions and distribution of household consumption are determined according to the generalized Nash cooperative bargaining solution, and agents have perfect foresight. It is shown that an increase in demand for women's labor can shift intra-household distribution in favor of men and thereby reduce women's welfare.

Suggested Citation

Dasgupta, Indraneel, Women's Employment, Intra-Household Bargaining, and Distribution: A Two-Sector Analysis. Oxford Economic Papers, Vol. 52, Issue 4, October 2000, Available at SSRN: https://ssrn.com/abstract=242163

Indraneel Dasgupta (Contact Author)

Durham University - Department of Economics and Finance ( email )

Durham, DH1 3HY
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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