Institutions, Social Norms, and Bargaining Power: An Analysis of Individual Leisure Time in Couple Households

Our study expands upon the literature in several ways. First, we use data on the US
and Denmark to examine cross-country differences in intrahousehold time allocation.
Comparing the US and Denmark is meaningful in this context. Both are very flexible market
economies which have achieved the same levels of economic growth and prosperity. Yet
substantial differences exist in terms of culture and institutions. Scandinavia in general is
noted for having a more egalitarian culture than the US (Fuwa 2004). In a more egalitarian
culture, power may be distributed more evenly than in a less egalitarian culture, suggesting
that power may not be as significant a determinant of time use in Denmark as in the US. In
addition, the US is clearly a country with a „liberal’ welfare system that places the emphasis
upon equal opportunities at the individual level whereas Denmark is a country with a „socio-
democratic’ welfare system that places a greater emphasis on egalitarianism not just for
opportunities but also for outcomes. These differences are reflected in actual economic
outcomes. The Gini index measure of income inequality for the US is 40.8, whereas in
Denmark it is only 24.7 (Human Development Report 2005). Comparisons of the welfare
systems in place in the US and Denmark (see Polakow 1997) further document the
substantially better safety net provided in the Danish as opposed to American system.
Individuals with little economic power in a relationship may in a country such as Denmark
with a more supportive social welfare system have a higher threat point in negotiating with
their partner over the allocation of time and goods. Thus, the less fortunate may not suffer
both in the labor market and the home. Finally, the estimated impact of divorce on each
partner’s income is quite different between the US and Denmark. Numerous studies in the
US have found that income falls following a divorce for the female partner. Bianchi, Subaiya,
and Kahn (1999) estimate that mothers have a needs adjusted income of only 56% that of

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