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Modelling interdependences between spouses by estimating income satisfaction

Research output: Contribution to journalJournal article


Journal publication date2/04/2007
JournalEconomics Bulletin
Number of pages5
Original languageEnglish


This paper models interdependences between spouses. To that end, it estimates income satisfaction in a collective family model framework using a sample of seven EU countries. The IV Hausman-Taylor estimator has been selected in the majority of countries, and it appears that those of Southern Europe (Greece, Portugal and Spain) are the only countries where both husbands' and wives' income satisfaction are significantly and positively affected by their spouses' wages and non-wage incomes, thus indicating a particular way of life characterized by mutual cooperation and income sharing between spouses.