The authors would like to thank three anonymous reviewers and the participants at the 2010 American Council on Consumer Interests (ACCI) Annual Meetings for valuable advice and comments. The usual disclaimer applies.
Family Decision Making and Resource Protection Adequacy
Article first published online: 13 FEB 2012
Copyright 2012 by The American Council on Consumer Interests
Journal of Consumer Affairs
Volume 46, Issue 1, pages 1–36, Spring 2012
How to Cite
BABIARZ, P., ROBB, C. A. and WOODYARD, A. (2012), Family Decision Making and Resource Protection Adequacy. Journal of Consumer Affairs, 46: 1–36. doi: 10.1111/j.1745-6606.2012.01224.x
- Issue published online: 19 MAR 2012
- Article first published online: 13 FEB 2012
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.