SEPARATE SPHERES BARGAINING AND THE MARRIAGE MARKET

This paper introduces the ''separate spheres'' bargaining model, a new model of distribution within marriage. It differs from divorce threat bargaining models (e.g., Manser-Brown, McElroy-Horney) in that the threat point is not divorce but a noncooperative equilibrium within marriage; this noncooperative equilibrium reflects traditional gender roles. The predictions of our model thus differ from those of divorce threat bargaining models; in the separate spheres model, cash transfer payments to the mother and payments to the father can-but need not-imply different equilibrium distributions in existing marriages. In the long run, the distributional effects of transfer policies may be substantially altered by changes in the marriage market equilibrium.