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Household bargaining and spending on children: Experimental evidence from Tanzania

Author

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  • Ringdal, Charlotte

    (Dept. of Economics, Norwegian School of Economics and Business Administration)

  • Sjursen, Ingrid Hoem

    (Dept. of Economics, Norwegian School of Economics and Business Administration)

Abstract
It is frequently assumed that money in the hands of women leads to better out-comes for their children than money in the hands of men. However, empirical and theoretical evidence are mixed. We conduct a novel between-subject lab-in-the-field experiment to study whether increasing the wife's control over resources causes a couple to allocate more to their child. The paper provides two main insights. First, increasing the wife's bargaining power does not increase the share allocated to the child, but leads to more gender-equal allocations to children. Second, time preferences are important in explaining household decision-making; it is better for the child that the most patient spouse has more relative bargaining power. Our results highlight the importance of taking a broader set of preferences into account when studying household decision-making, and suggest that policy aimed to increase spending on children should target the spouse with preferences most aligned with such spending.

Suggested Citation

  • Ringdal, Charlotte & Sjursen, Ingrid Hoem, 2017. "Household bargaining and spending on children: Experimental evidence from Tanzania," Discussion Paper Series in Economics 19/2017, Norwegian School of Economics, Department of Economics.
    • Handle: RePEc:hhs:nhheco:2017_019
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    Cited by:

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    3. Basu, Arnab & Dimova, Ralitza & Gbakou, Monnet & Viennet, Romane, 2023. "Parental risk preferences, maternal bargaining power, and the educational progressions of children: Lab-in-the-field evidence from rural Côte d'Ivoire," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 102(C).
    4. Bjorvatn, Kjetil & Getahun, Tigabu Degu & Halvorsen, Sandra Kristine, 2020. "Conflict or cooperation? Experimental evidence on intra-household allocations in Ethiopia," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 85(C).
    5. Laurens Cherchye & Pierre-André Chiappori & Bram De Rock & Charlotte Ringdal & Frederic Vermeulen, 2021. "Feed the children," IFS Working Papers W21/32, Institute for Fiscal Studies.
    6. Guilherme Lichand & Juliette Thibaud, 2020. "Parent-bias," ECON - Working Papers 369, Department of Economics - University of Zurich, revised Jun 2022.
    7. Isha Chawla & Joseph Svec, 2023. "Household savings and present bias among Chinese couples: A household bargaining approach," Journal of Consumer Affairs, Wiley Blackwell, vol. 57(1), pages 648-672, January.
    8. Ramphul Ohlan, 2021. "Economic violence among women of economically backward Muslim minority community: the case of rural North India," Future Business Journal, Springer, vol. 7(1), pages 1-11, December.
    9. Hertegård, Edvin, 2024. "Divorce law reform, family stability, and children's long-term outcomes," Working Paper Series 2024:11, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    10. Delprato, Marcos, 2023. "Children and adolescents educational gender gaps across the lifecourse in sub-Saharan Africa: On the role of mothers' lack of empowerment as a barrier for girls' educational performance," International Journal of Educational Development, Elsevier, vol. 103(C).

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    More about this item

    Keywords

    Intra-household allocation; female bargaining Power; Tanzania;
    All these keywords.

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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