Why Micro-Credit May Leave Women Worse Off: Non-Cooperative Bargaining and the Marriage Game in South Asia

Micro-credit programmes targeting women continue to grow in South Asia, although research suggests that wives frequently hand over loans to their husbands. Women may also be unable to control the income generated by micro-enterprises. This article presents an intra-household bargaining model explaining these findings and showing how credit may leave women worse off, while benefiting men. This game-theoretic model also shows why a woman might rationally choose to give her loan to her husband even though she does not expect to benefit and knows he may not repay. Finally, the article identifies the conditions necessary for micro-credit to benefit women.     

Price policy,poverty, and power within rural West African households

This paper explores the impact of agricultural price policy on poverty in West Africa, a region in which prices are an important tool for raising rural household incomes. A game-theoretic, collective model of household income generation and resource allocation is developed that incorporates three features typical of West African rural households: preference heterogeneity among women and men, individual resource control, and power-mediated bargaining over resource control in the face of changes in households' economic environments. To explore price effects, the model is used to simulate the income impacts of large increases in cotton prices accompanying fast-paced agricultural liberalisation in Burkina Faso in the 1980s. The paper shows that where resources are controlled individually by household members, rather than pooled, Pareto efficiency in income generation does not hold. The impact of agricultural price policy on poverty is mediated by bargaining over resource control within households. Both the relative bargaining power of women and men and the degree of preference heterogeneity between them play fundamental roles in the outcome of such bargaining. The results point to a lower ability of households to take advantage of price incentives and thereby raise their incomes than a unitary household model, in which preferences do not differ and resources are pooled, predicts. They suggest that the effectiveness of price policy in reducing poverty in the region would be enhanced by taking into account the incentive structure within households as well as individual household members' ability to bargain over the benefit and cost streams flowing from price changes.     

In Times of Sickness: Intra-household Labour Substitution in Rural Indonesian Households

In many developing countries, households with ill adults suffer not only from diminished labour supply but also from an inability to borrow against future labour income. Intra-household labour substitution may be an important coping strategy for these households. Using information about individual health status provided by Indonesia Family Life Survey, this study finds some evidence that Indonesian farm households cope with chronic illnesses of male adults through intra-household labour substitution. Yet, the results show that this strategy is not effective in the case of severe health shocks and that these households are unable to keep their family farm profits stable.     

Gender,Land and Sexuality: Exploring Connections

This article explores links between the issues of sexuality and gendered control over agricultural land. It discusses gendered land rights in several settings, concentrating particularly on agrarian and land reforms. I argue that land redistribution in the “household” model, discussed for Chile and Nicaragua, tends to entrench male household and agricultural control. In contrast, more collective forms, discussed for Vietnam, have displayed economic weaknesses but had potential to undercut such control by socialising women’s labour. Fears about and visions of female sexuality have much to do with backlashes against inclusion of women, either through allowing them membership of cooperatives and collectives or through granting rights such as joint titling to land. In sub-Saharan Africa, there currently exists much discussion of improving women’s control over agriculture and its products. These continue to meet opposition, despite female predominance in agriculture in the region. Thus, even though women work on the land in many societies, this does not give them any automatic “closeness” to nature or say within households. Control over women’s, especially wives’, labour within peasant households, is linked to the manner that their persons and their labour are bound up in this socio-economic form. The article also examines two feminist attempts to configure alternative agricultural forms: the case of a lesbian agricultural collective in the west of the USA and an Indian model of new female-centred households for single women. Heterosexuality as an institution and gender subordination more broadly, as the examples here indicate, have to do not only with sexual practices or identity but extend also to issues of labour and access to crucial resources.     

The ‘Stubborn Stain’ on Development: Gendered Meanings of Housework (Non-)Participation in Cambodia

The persistence of intra-household inequality is widely regarded as a ‘stubborn stain’ on development achievements and aspirations. As a key hindrance, this article considers gendered meanings of housework undertaken in male-headed households of Siem Reap, Cambodia. Encompassing cooking, cleaning and child-care as forms of unpaid labour performed in the home, the article uses in-depth interviews to reveal the differential discourses that men and women draw upon to explain current variances in the (non)-sharing of this work. It brings to the fore the diversity, and divergence, of meanings surrounding this everyday practice, discursive domains of domestic inequality which must inform future development interventions and programmes. Until such time that these underlying discourses are taken seriously in the development arena, the article argues that women's housework will remain largely tied to appeals to cultures, traditions and customs that guard against the ‘cleaning up’ of housework injustice.     

Cows,Missing Milk Markets,and Nutrition in Rural Ethiopia

Abstract

In rural economies encumbered by significant market imperfections, farming decisions may partly be motivated by nutritional considerations, in addition to income and risk factors. These imperfections create the potential for farm assets to have direct dietary impacts on nutrition in addition to any indirect effects via income. We test this hypothesis for the dairy sector in rural Ethiopia, finding that cow ownership raises children’s milk consumption, increases linear growth, and reduces stunting. We also find that household cow ownership is less important where there is good access to local markets, suggesting that market development can substitute for household cow ownership.     

Short‐run changes in rural income inequality: A decomposition analysis

This paper quantitatively assesses the principal determinants of the rather dramatic decline in income inequality observed in rural India between 1968–69 and 1970–71. A simple form of decomposition analysis is used to demonstrate that the most important effects of changes in weather, in technology, and in other factors on income distribution are those which occur rather indirectly as a result of overall tightening of the labour market. Whereas in periods of generally bad weather, workers from high‐income households apparently ‘crowd‐out’ those from low‐income households, in periods of good weather income effects induce the former to consume leisure, thereby opening up more jobs for workers from low‐income households.     

Income and Asset Poverty among Pastoralists in Northern Kenya

In this study we use household panel data collected in Marsabit district of Northern Kenya, to analyse the patterns of livelihood sources and poverty among pastoralists in that area. We estimate income poverty using imputed household income relative to the adjusted poverty line and asset poverty using a regression-based asset index and tropical livestock units (TLU) per capita. Our results indicate that keeping livestock is still the pastoralists’ main source of livelihood, although there is a notable trend of increasing livelihood diversification, especially among livestock-poor households. The majority of households (over 70%) are both income and livestock-poor with few having escaped poverty within the five-year study period. Disaggregating income and asset poverty also reveals an increasing trend of both structurally poor and stochastically nonpoor households. The findings show that the TLU-based asset poverty is a more appropriate measure of asset poverty in a pastoral setting.     

Ethnic minority development in Vietnam

This study examines the disparities in living standards between and among the different ethnic groups in Vietnam. Using data from the Vietnam Living Standards Surveys and 1999 Census, we show that ‘majority’ Kinh and Hoa households have substantially higher living standards than ‘minority’ households from Vietnam's 52 other ethnic groups. While the Kinh, Hoa, Khmer and Northern Highland Minorities benefited from economic growth in the 1990s, the position of the Central Highland Minorities stagnated. Decompositions show that even if minority households had the same endowments as Kinh households, this would close no more than a third of the gap in their per capita expenditures. While some ethnic minorities seem to be doing well out of a strategy of assimilating with the Kinh-Hoa majority, others groups are attempting to integrate economically while retaining distinct cultural identities, and a third group is largely being left behind by the growth process.     

Do Relative Income and Income Inequality Affect Consumption? Evidence from the Villages of Rural China

This article examines how a household's consumption rate is affected by its relative income and income inequality within a community. Based on the theory of social status seeking in consumption, we test hypotheses related to these factors using a unique panel data set of rural households in China observed within a few hundred villages between 2003 and 2006. We find that the household's consumption rate is negatively related to the relative income position after controlling for the absolute income, and positively related to the income inequality of the village. We confirm these with different measurements of relative position.     

Antipoverty Transfers and Labour Market Outcomes: Regression Discontinuity Design Findings

The article estimates the impact of Familias en Acción, a human development conditional cash transfer programme, on adult labour market outcomes in urban areas in Colombia. Relying on a regression discontinuity design and a large panel dataset, the article finds significant, largely positive, but heterogeneous programme effects on labour market outcomes. The findings suggest that antipoverty transfers enable a re-allocation of household productive resources among participant households.     

Sanitation and Religion in South Asia: What Accounts for Differences across Countries?

Exposure to open defecation has serious consequences for child mortality, health, and human capital development. South Asia has the highest rates of open defecation worldwide, and although the incidence declines as household income rises, differences across South Asian countries are not explained by differences in per capita income. The rate of open defecation in sub-national regions of Bangladesh, India and Nepal is highly correlated with the fraction of the population that identifies as Hindu, in part because certain rituals of purity and pollution discourage having latrines in close proximity to one’s home. Almost all open defecation occurs in rural areas, and this paper estimates how much the rate could be reduced if rural households in regions that have a higher fraction of Hindus, where open defecation is still common, altered their behaviour to reflect that of non-Hindu households in regions that are predominantly non-Hindu, where the rate of open defecation is much lower. Using nonparametric reweighting methods, this paper projects that rural open defecation in Bangladesh, India, and Nepal could be reduced to rates of between 6 and 8 per cent, compared to the prevailing level of 65 per cent.     

Natural Disasters,Gender and Handicrafts

Using original post-disaster household survey data gathered in rural Fiji, this article explores the disaster–gender nexus. Female-headed households are disadvantaged, not because of bias against them in disaster damage or relief, but because of a newly emerging gendered division of labour for dwelling rehabilitation that tightens their constraints on intra-household labour allocation. Female-headed households with damaged dwellings resort to female labour activities connected with informal risk sharing – augmenting production of handicrafts for kava rituals in exchange for male-labour help. Female-headed households without male-adult members resort to such activities more than those with them, because of their distinctly different decision-making processes.     

The Cost of Empowerment: Multiple Sources of Women’s Debt in Rural India

Abstract

Poor women borrow from multiple sources. This study examines whether the source of debt matters for women’s role in household financial decisions. Drawing on a household survey from rural Tamil Nadu, we categorise women’s loans along the lines of accessibility and formality into ‘planned loans’ and ‘instant loans’. We find that ‘instant loans’ support women’s bargaining power in various types of household financial decisions, whereas ‘planned loans’ have no impact. This surprising result is better understood when the nature of ‘instant loans’ is examined – these are frequently usurious, involve coercive enforcement methods and are considered socially debasing. Hence women who use them perform a convenient role for their households and in return gain some negotiating power.     

Maize Market Participation among Female- and Male-Headed Households in Ethiopia

This paper examines the market participation gaps and their causes between female-headed households (FHHs) and male-headed households (MHHs) in Ethiopia using an Oaxaca-Blinder decomposition approach. The results showed that structural/coefficient effects accounted for 74 per cent (65%) of the differences between FHH and MHH in the net buyer (net seller) maize market positions. The gap between FHH and MHHs regarding quantities of maize sold was largely explained by endowment effects. The results imply that closing the observed market participation gaps will require policy interventions that facilitate equal access for both FHHs and MHHs to resources and other supportive social networks.     

The Changing Determinants of Schooling Investments: Evidence from Villages in the Philippines, 1985–89 and 2002–04

This paper aims to explore the changing determinants of child progress through school over the last two decades using unique long-term household-panel data from four villages in the Philippines. In a regime of low income in the late 1980s, income from farming is the most important source of funds to finance child schooling. As households shift away from farm to non-farm activities and their children pursue higher education, non-farm income and revenues from pawning of land have emerged as main sources of schooling funds in the early 2000s. In this process, farm income has lost its prime importance as a determinant of schooling investments among rural households.     

The Role of Land Certification in Reducing Gaps in Productivity between Male- and Female-Owned Farms in Rural Ethiopia

This paper analyses the impact of a low-cost land certification programme on the productivity of female-headed households. The hypotheses tested in the paper emphasise on the interaction between the constraints that female-headed households face in terms of insecure land tenure, lack of productive resources and suboptimal land market participation, on the one hand, and the tenure security benefits of certification on the other. Our findings show that land certification has a positive effect on land market participation and productivity. Our analysis also suggests higher marginal effects of certification on female-headed households’ productivity, compared to the male ones.     

Social Inequality and Assessments of Democracy and the Market: Evidence from Central and Eastern Europe

Considerable comparative scholarly attention has been paid to various aspects of mass support for democracy and the market. However, despite strong theoretical suggestions of a linkage, little is known about the impact of social inequality on this support. We address this issue using evidence from mass surveys undertaken in 12 post-communist states in 2007, supplemented by country-level data about economic and political performance. Specifically, we investigate whether social inequality generates negative perceptions that democracy and the market will lead to social conflict and if it increases support for anti-democratic forms of governance. Notably, we find little link between citizens’ expectations of social conflict and national-level indices of income inequality. However, we do find a link between perceptions of the extent of social inequality and expectations of market-generated—but not democracy-generated—conflict. Underscoring these positive and negative findings, perceptions of social inequality are also clearly consequential for support for ‘strong-hand’ economic government but not for anti-democratic leadership.     

In the Same Boat,but not Equals: The Heterogeneous Effects of Parental Income on Child Labour

This paper examines the impact of parental income on child labour. The empirical literature has found conflicting results regarding whether poverty leads parents to send their children to work. Most of this literature, however, treats child labourers as a single homogeneous group, ignoring differences among working children in work intensity, hazard exposure, and type of employer. This paper argues that accounting for the heterogeneity in child’s working conditions may explain the conflicting results in the literature. Specifically, the existence of this heterogeneity may reflect heterogeneity in parents’ perceptions about the returns to child’s work, and hence in parental reasons to send their children to work. To test this hypothesis, I estimate the effects of parental income on child labour for various working conditions, using data from the 2010 Egypt National Child Labour Survey. This dataset provides rich information on the working conditions of child labourers. The findings show that the effect of parental income on child labour is minimal among children who work in non-hazardous jobs, jobs that are not highly physical, or in family businesses. In contrast, higher parental income does decrease the likelihood of child labour in market work, jobs that are physical and hazardous jobs.     

Are pre‐schoolers from female‐headed households less malnourished? A comparative analysis of results from Ghana and Kenya

This article compares household income level and pre‐schooler weight‐for‐age across household groupings that are differentiated by female headship variables which are reflective of the heterogeneity of female‐headed households. Data from Kenya indicate that it is the interaction of income and female headship at low‐income levels which promotes pre‐schooler nutritional status. For Ghana, incomes have to be quite large (in the upper tercile of the distribution) before a reduction in the child's likelihood of having a low weight‐for‐age is achieved through further income increases. We argue that an absence of complementary child health inputs is more likely for households in the Ghana sample, and that in this type of environment, differences in nurturing patterns, as proxied by headship status, will have a muted impact on child nutrition.