The effect of labour demand on women’s intra-household decision power: Evidence from Indonesia

Research output: Working paper

Abstract

This study contributes to the literature on household decisions and women’s
empowerment by looking at the relationship between labour market opportunities and women’s
intra-household decision power in Indonesia. Using Bartik labour demand measures, I estimate
the effect of change in local labour demand for women in large and medium manufacturing on
women’s intra-household decision power. Household decision power is calculated using direct
information on who makes decisions in the household. I find that increase in labour demand for
women in large and medium manufacturing increases women’s intra-household decision power
by a large magnitude. Increase in labour demand for men decreases women’s household
decision power. Consistent with intra-household bargaining theories, increase in labour demand
for women increases women’s decision power even for women who do not work. Based on new
literature discussing the validity of Bartik instruments, I discuss the validity of my identification
strategy and conduct robustness tests.
Original languageEnglish
PublisherCrawford School of Public Policy
Pages1-38
Number of pages39
VolumeNo. 2021/01
Publication statusPublished - 2021

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