Dowry and Intrahousehold Bargaining: Evidence from China

This paper analyzes the relationship between a woman’s intrahousehold bargaining position and her welfare within marriage. Simultaneity problems common to the literature are overcome by using dowry to proxy for bargaining position. Omitted variable bias is addressed by using grain shocks in the year preceding marriage and sibling sex composition as instruments for dowry. Instrumented dowry positively impacts several measures of a wife’s welfare, including time allocation, household purchases, and the wife’s decision-making authority, thereby offering strong evidence to support collective models of the household.http://deepblue.lib.umich.edu/bitstream/2027.42/39994/3/wp608.pd

Dowry and Intrahousehold Bargaining: Evidence from China

This paper analyzes the relationship between a woman’s intrahousehold bargaining position and her welfare within marriage. Simultaneity problems common to the literature are overcome by using dowry to proxy for bargaining position. Omitted variable bias is addressed by using grain shocks in the year preceding marriage and sibling sex composition as instruments for dowry. Instrumented dowry positively impacts several measures of a wife’s welfare, including time allocation, household purchases, and the wife’s decision-making authority, thereby offering strong evidence to support collective models of the household.Intrahousehold Allocation, Dowry and Brideprice, Marriage, China

Local Distributional Effects of Government Cash Transfers in Chile

Despite rapid economic growth and poverty reduction, inequality in Chile has remained high and remarkably constant over the last 20 years, prompting academic and public interest in the subject. Due to data limitations, however, research on inequality in Chile has concentrated on the national and regional levels. The impact of cash subsidies to poor households on local inequality is thus not well understood. Using poverty mapping methods to asses this impact, we find heterogeneity in the effectiveness of regional and municipal governments in reducing inequality via poverty-reduction transfers, suggesting that alternative targeting regimes may complement current practice in aiding the poor.http://deepblue.lib.umich.edu/bitstream/2027.42/57252/1/wp872 .pd

Estimating Poverty for Indigenous Groups in Chile by Matching Census and Survey Data

It is widely held that indigenous Chileans experience greater rates of poverty and indigence than non-indigenous Chileans, yet the evidence to date has been based on surveys that are not representative by ethnicity. In this paper, we use poverty mapping methodologies that are typically applied to geography to develop statistically precise estimates of poverty, indigence, poverty gaps, and indigence gaps for each of the eight indigenous groups recognized by Chilean law. We find that indigenous people experience higher rates of poverty and indigence and greater depth of poverty and indigence than non-indigenous people. These results hold within individual regions, suggesting that the differential access to economic opportunities in different parts of the country cannot fully explain the results. We also find that the burden of poverty is not shared equally across indigenous groups. Instead, the Mapuche and Aymar· experience disproportionately high poverty rates. We argue that including ethnicity in criteria for identifying poor households may help policy-makers to improve antipoverty targeting.http://deepblue.lib.umich.edu/bitstream/2027.42/64360/1/wp932.pd

Positional spending and status seeking in rural China

Focusing on a remote area in rural China, we use a panel census of households in 26 villages to show that socially observable spending has risen sharply in recent years. We demonstrate that such spending by households is highly sensitive to social spending by other villagers. This suggests that social spending is either positional in nature (that is, motivated by status concerns) or subject to herding behavior. We also document systematic relations between social spending and changes in higher order terms of the income distribution. In particular, and consistent with theories of rank-based status seeking, we find the poor increase spending on gifts as the income distribution tightens so that local competition for status intensifies. In addition families of unmarried men (who face grim marriage prospects given China’s high sex ratios, especially in poor areas) intensify their competition for status by increasing their spending on weddings. The welfare implications of spending in order to “keep up with the Joneses” are potentially large, particularly for poor households.Positional spending, Poverty, Rural-urban linkages, status,

Poverty, Education, and Intrahousehold Bargaining: Evidence from China

This dissertation is comprised of three separate essays that analyze decision making and education within resource-constrained households. Each essay makes use of data from households and schools in rural China to investigate problems of broad interest in development microeconomics. Low income coupled with incomplete credit markets make financing educational investments difficult in poor areas even when the returns to education exceed the costs. These problems are compounded by the prevalence of less educated parents in poor areas because such parents may be less likely to educate their own children. In particular, less educated parents may have a lower ability to assist their children with schoolwork, may be less able to provide complementary inputs to learning, and may value education less. Moreover, their children may face lower returns to schooling. In addition, the low education levels of women may affect their relative intra-household bargaining positions and thus household decisions about children\u27s education if parental preferences differ

Parental Education and Investment in Children’s Human Capital in Rural China

The landmark study of race and education in the United States known as the Coleman Report (Coleman et al. 1966) concluded that family characteristics are more important determinants of educational achievement than school quality or teacher experience, particularly in the early stages of schooling. From this result sprang two prominent lines of academic inquiry. The first focuses on so-called education production functions (e.g., Hanushek 1997), with an eye toward cost-benefit analyses of various investments in teachers and schools. These studies often pay little attention to family background variables, treating them as exogenous controls. The second line of inquiry seeks to promote social policies that foster student achievement by studying why family background has such a pronounced effect on children\u27s acquisition of human capital

Neighbor effects in the provision of public goods in a young democracy: Evidence from China

Fiscal mimicking and yardstick competition among neighboring jurisdictions have been widely documented in developed countries with long histories of democracy. However, there is very little empirical evidence concerning these practices in developing countries with young democracies. Using a primary panel of 86 rural Chinese administrative villages that have undergone transitions to democracy over the last two decades, we show that the neighborhood effect also exists in a young democracy, albeit at a lower magnitude than in a mature democracy. Elected chairs of village committees who have served more than one term respond positively to the provision of public projects in neighboring villages by increasing both the number of public projects and the funding allocated to undertake them. In contrast, appointed party secretaries with more than one year of service are insensitive to neighbors' performance. In addition, village leaders are strategic in timing the arrival of public projects to increase the probability of re-election: In the year preceding elections, both the number and budget of public projects increase significantly. In this sense, politicians in young and old democracies behave alike.neighbors, Public goods,

Estimating Poverty for Indigenous Groups in Chile by Matching Census and Survey Data

It is widely held that indigenous Chileans experience greater rates of poverty and indigence than non-indigenous Chileans, yet the evidence to date has been based on surveys that are not representative by ethnicity. In this paper, we use poverty mapping methodologies that are typically applied to geography to develop statistically precise estimates of poverty, indigence, poverty gaps, and indigence gaps for each of the eight indigenous groups recognized by Chilean law. We find that indigenous people experience higher rates of poverty and indigence and greater depth of poverty and indigence than non-indigenous people. These results hold within individual regions, suggesting that the differential access to economic opportunities in different parts of the country cannot fully explain the results. We also find that the burden of poverty is not shared equally across indigenous groups. Instead, the Mapuche and Aymará experience disproportionately high poverty rates. We argue that including ethnicity in criteria for identifying poor households may help policy-makers to improve antipoverty targeting.Poverty; Indigence; Ethnicity; Poverty Mapping; Chile