We investigate perceived job security risk and the distribution of non-labour income between spouses in a household context. In the process, the restrictions implied by Beckerian-caring preferences in the Chiappori (2002) Collective model are considered, and estimates of the sharing rule are derived. The findings support the idea of household formation as a tool that caring partners use to share risk. Our results provide further insight as to how unemployment risk may affect interaction between Australian spouses.
Job Insecurity Within the Household: Are Australian Householders Caring When it Comes to Risk Sharing?
Dickson, Maria Michela
2016
Abstract
We investigate perceived job security risk and the distribution of non-labour income between spouses in a household context. In the process, the restrictions implied by Beckerian-caring preferences in the Chiappori (2002) Collective model are considered, and estimates of the sharing rule are derived. The findings support the idea of household formation as a tool that caring partners use to share risk. Our results provide further insight as to how unemployment risk may affect interaction between Australian spouses.
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