Intra-Household Arrangements and Economic Satisfaction

This paper studies the nature of intra-household arrangements in Mexico on the basis of the relationship between a person’s economic satisfaction and her household income. It also studies different theories of the family. The main results support the argument that Mexican families are mostly altruistic and communitarian, with the evidence rejecting a cooperative-bargaining model in Mexican families. Special consideration is given to the situation in low-income families, where marginalization from the household’s economic resources may expose a person to substantially severe economic deprivation. Intra-household arrangements may vary across countries and cultures. Thus, their understanding is crucial for making cross-country comparisons based on household income and per-capita income measures.