PEPP Special Seminar (June 25 2026) – Prof. Alex Zhou
2026/06/11
2026/6/25 (Thur.)
Speaker: Prof. Alex Zhou (National Graduate Institute for Policy Studies (GRIPS) )
Chair: Prof. Vuong Nguyen
Time: 16:45~18:15
Format: Onsite 3K311
Title: The Impact of Intra-Household Income Hiding on Labor Productivity
Abstract: Income hiding between spouses is pervasive and economically costly, particularly in low- income settings where households rely on informal risk-sharing. While prior research has focused on how hidden income affects consumption and allocation, much less is known about its effects on labor supply and productivity. Our study suggests that one reason for this persistence is that income hiding can provide strategic benefits by influencing labor supply decisions. Using a field experiment with 297 low-income couples in Phnom Penh, Cambodia, we randomize whether one spouse’s earnings from a piece-rate production task are exogenously disclosed to their partner or remain private. We find that disclosure re- duces female productivity by 9 percent but increases male productivity by 16 percent. A two-stage bargaining model shows that the effect of disclosure depends on intra-household bargaining power: workers with low bargaining power exert more effort when income can be hidden, while those with high bargaining power exert more effort when income is dis- closed. Empirical tests support this mechanism, with gender differences largely explained by differences in bargaining power. These findings highlight a previously overlooked link between intra-household information frictions and labor productivity, with implications for pay transparency, digital payments, and financial inclusion policies.
https://www.grips.ac.jp/list/en/facultyinfo/zhou_alex/
