Moral hazard in marriage: the use of domestic labor as an incentive device

This paper argues that some women in developing countries use domestic labor as a tool to incentivize husbands. A theoretical model is derived based on the traditions of rural Malawi, where men often supplement farm income with wage labor. As wage labor is not observed by the wife, this creates moral hazard: husbands may not make enough effort to bring home wages. The model predicts that women overcome this by using domestic labor as an incentive device: they increase their domestic labor and reduce their leisure in response to good consumption outcomes, but only if they cannot rely on divorce threat as an alternative source of incentives. This prediction is confirmed using survey data from Malawi. Identification is based on the fact that Malawi's kinship traditions exogenously determine women's accessibility to divorce. Where divorce is not an option, women make inefficient labor choices in order to provide incentives

Heterogeneous human capital, uncertainty, and the structure of plans: A market process approach to marriage and divorce

Capital heterogeneity, No-fault divorce, Marriage, Marriage-specific human capital, Market process, Plan disequilibrium, Covenant marriage, D10, D13, D80, J22, J24, K19,

An empirical analysis of the time allocation of Italian couples: are they responsive?

Time allocation, Work behavior, Household economics, D1, D13, J21,

Teaching Bioeconomics

Bioeconomics is a relatively young field that uses an expanded microeconomics to examine animal behavior, human behavior, and animal and human social institutions. A voluminous literature is rapidly accumulating. There are as yet no standard textbooks, but there are several excellent books and/or articles that can be used in combination with videos and other aids to make a course that students will enjoy and that teachers can use to advance the frontiers of scholarship in economics and biology. Copyright Springer 2005altruism, conflict, cooperation, evolution, game theory, institutions, rationality,