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Family Decision Making and Resource Protection Adequacy
Author(s) -
BABIARZ PATRYK,
ROBB CLIFF A.,
WOODYARD ANN
Publication year - 2012
Publication title -
journal of consumer affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.582
H-Index - 62
eISSN - 1745-6606
pISSN - 0022-0078
DOI - 10.1111/j.1745-6606.2012.01224.x
Subject(s) - spouse , bargaining power , leverage (statistics) , resource (disambiguation) , economics , general partnership , actuarial science , resource distribution , standard of living , payment , business , demographic economics , public economics , resource allocation , microeconomics , finance , sociology , statistics , computer network , computer science , market economy , mathematics , anthropology
This study examines the correlation between resource protection and the intrahousehold distribution of bargaining power. Using data from the Health and Retirement Study, the analysis quantifies potential changes in the surviving individual's living standard to evaluate the adequacy of resource protection. Individuals who generate a larger share of family income, are more financially knowledgeable, or have the “final say” in family decisions leverage their bargaining power to secure higher protection of their hypothetical widowhood living standard. Consequently, spouses with more bargaining power are less likely to experience declines of their living standard in the event of their spouse passing away and are more likely to be overprotected.