IDEAS home Printed from https://ideas.repec.org/a/eee/deveco/v139y2019icp109-121.html
   My bibliography  Save this article

How does intergenerational investment respond to changes in the marriage market? Evidence from China

Author

Listed:
  • Han, Li
  • Shi, Xinzheng

Abstract

This paper examines how intergenerational investment responds to changes in the marriage market. Two major channels are modeled and empirically tested: first, expecting gender-specific impacts on the future marriage market for their children, parents' adjustments in educational investment differ by the gender of children, and second, changes in marriage market conditions have contemporaneous impacts on intrahousehold bargaining because they change existing couples' remarriage options, which affects their educational investment in their children. We test our model by exploiting a policy change in favor of local urban men in the urban marriage market in China. We find that educational investment by local-local couples decreases for sons but changes little for daughters. Consistent with the decrease in children's educational investment, female-favored consumption decreases while male-favored consumption increases. These results provide evidence of interaction between the intrahousehold bargaining and the future marriage prospect effects.

Suggested Citation

  • Han, Li & Shi, Xinzheng, 2019. "How does intergenerational investment respond to changes in the marriage market? Evidence from China," Journal of Development Economics, Elsevier, vol. 139(C), pages 109-121.
    • Handle: RePEc:eee:deveco:v:139:y:2019:i:c:p:109-121
    DOI: 10.1016/j.jdeveco.2019.03.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0304387818304449
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jdeveco.2019.03.002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Esther Duflo, 2003. "Grandmothers and Granddaughters: Old-Age Pensions and Intrahousehold Allocation in South Africa," The World Bank Economic Review, World Bank, vol. 17(1), pages 1-25, June.
    2. Deininger, Klaus W. & Jin, Songqing & Nagarajan, Hari & Xia, Fang, 2013. "How Far Does the Amendment to the Hindu Succession Act Reach? Evidence from Two-Generation Females in Urban India," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 151432, Agricultural and Applied Economics Association.
    3. Suqin Ge & Dennis Tao Yang, 2014. "Changes In China'S Wage Structure," Journal of the European Economic Association, European Economic Association, vol. 12(2), pages 300-336, April.
    4. M. Browning & P. A. Chiappori, 1998. "Efficient Intra-Household Allocations: A General Characterization and Empirical Tests," Econometrica, Econometric Society, vol. 66(6), pages 1241-1278, November.
    5. Browning, Martin & Francois Bourguignon & Pierre-Andre Chiappori & Valerie Lechene, 1994. "Income and Outcomes: A Structural Model of Intrahousehold Allocation," Journal of Political Economy, University of Chicago Press, vol. 102(6), pages 1067-1096, December.
    6. Pierre-André Chiappori & Murat Iyigun & Yoram Weiss, 2009. "Investment in Schooling and the Marriage Market," American Economic Review, American Economic Association, vol. 99(5), pages 1689-1713, December.
    7. Pierre‐Andre Chiappori & Murat Iyigun & Jeanne Lafortune & Yoram Weiss, 2017. "Changing the Rules Midway: The Impact of Granting Alimony Rights on Existing and Newly Formed Partnerships," Economic Journal, Royal Economic Society, vol. 127(604), pages 1874-1905, September.
    8. Wang, Shing-Yi, 2014. "Property rights and intra-household bargaining," Journal of Development Economics, Elsevier, vol. 107(C), pages 192-201.
    9. Rasul, Imran, 2008. "Household bargaining over fertility: Theory and evidence from Malaysia," Journal of Development Economics, Elsevier, vol. 86(2), pages 215-241, June.
    10. Pierre‐Andre Chiappori & Murat Iyigun & Jeanne Lafortune & Yoram Weiss, 2017. "Changing the Rules Midway: The Impact of Granting Alimony Rights on Existing and Newly Formed Partnerships," Economic Journal, Royal Economic Society, vol. 127(604), pages 1874-1905, September.
    11. Marcos A. Rangel, 2006. "Alimony Rights and Intrahousehold Allocation of Resources: Evidence from Brazil," Economic Journal, Royal Economic Society, vol. 116(513), pages 627-658, July.
    12. Majlesi, Kaveh, 2016. "Labor market opportunities and women's decision making power within households," Journal of Development Economics, Elsevier, vol. 119(C), pages 34-47.
    13. Li Han & Tao Li & Yaohui Zhao, 2015. "How Status Inheritance Rules Affect Marital Sorting: Theory and Evidence from Urban China," Economic Journal, Royal Economic Society, vol. 125(589), pages 1850-1887, December.
    14. Jeanne Lafortune, 2013. "Making Yourself Attractive: Pre-marital Investments and the Returns to Education in the Marriage Market," American Economic Journal: Applied Economics, American Economic Association, vol. 5(2), pages 151-178, April.
    15. Seema Jayachandran, 2015. "The Roots of Gender Inequality in Developing Countries," Annual Review of Economics, Annual Reviews, vol. 7(1), pages 63-88, August.
    16. Sun, Ang & Zhao, Yaohui, 2016. "Divorce, abortion, and the child sex ratio: The impact of divorce reform in China," Journal of Development Economics, Elsevier, vol. 120(C), pages 53-69.
    17. Browning,Martin & Chiappori,Pierre-André & Weiss,Yoram, 2014. "Economics of the Family," Cambridge Books, Cambridge University Press, number 9780521795395.
    18. Roy, Sanchari, 2015. "Empowering women? Inheritance rights, female education and dowry payments in India," Journal of Development Economics, Elsevier, vol. 114(C), pages 233-251.
    19. Pierre-Andre Chiappori & Bernard Fortin & Guy Lacroix, 2002. "Marriage Market, Divorce Legislation, and Household Labor Supply," Journal of Political Economy, University of Chicago Press, vol. 110(1), pages 37-72, February.
    20. Shelly J. Lundberg & Robert A. Pollak & Terence J. Wales, 1997. "Do Husbands and Wives Pool Their Resources? Evidence from the United Kingdom Child Benefit," Journal of Human Resources, University of Wisconsin Press, vol. 32(3), pages 463-480.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dong, Xiaoqi & Liang, Yinhe & Zhang, Jiawei, 2023. "Fertility responses to the relaxation of migration restrictions: Evidence from the Hukou reform in China," China Economic Review, Elsevier, vol. 81(C).
    2. Li Han & Xinzheng Shi & Ming-ang Zhang, 2022. "How Does Matching Uncertainty Affect Marital Surplus? Theory and Evidence from China," HKUST CEP Working Papers Series 202202, HKUST Center for Economic Policy.
    3. Chen, Liwen & Chung, Bobby W. & Wang, Guanghua, 2023. "Exposure to socially influential peer parents: Evidence from cadre parents in China," China Economic Review, Elsevier, vol. 78(C).
    4. Wanru Xiong, 2022. "Dynamics between Regional Sex Ratios at Birth and Sex Ratios at Prime Marriageable Ages in China," Population and Development Review, The Population Council, Inc., vol. 48(2), pages 545-578, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bergolo, Marcelo & Galván, Estefanía, 2018. "Intra-household Behavioral Responses to Cash Transfer Programs. Evidence from a Regression Discontinuity Design," World Development, Elsevier, vol. 103(C), pages 100-118.
    2. Marcos A. Rangel & Duncan Thomas, 2019. "Decision-Making in Complex Households," Working Papers 2019-070, Human Capital and Economic Opportunity Working Group.
    3. Thomas, Duncan & Rangel, Marcos, 2020. "Decision-Making in Complex Households," CEPR Discussion Papers 14278, C.E.P.R. Discussion Papers.
    4. Donni, Olivier & Molina, José Alberto, 2018. "Household Collective Models: Three Decades of Theoretical Contributions and Empirical Evidence," IZA Discussion Papers 11915, Institute of Labor Economics (IZA).
    5. Lixing Li & Xiaoyu Wu & Yi Zhou, 2021. "Intra-household bargaining power, surname inheritance, and human capital accumulation," Journal of Population Economics, Springer;European Society for Population Economics, vol. 34(1), pages 35-61, January.
    6. Denni Tommasi, 2016. "Household Responses to cash Transfers," Working Papers ECARES ECARES 2016-20, ULB -- Universite Libre de Bruxelles.
    7. Laurens CHERCHYE & Thomas DEMUYNCK & Bram DE ROCK, 2010. "Noncooperative household consumption with caring," Working Papers of Department of Economics, Leuven ces10.34, KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven.
    8. Pierre André Chiappori & José Ignacio Gimenez Nadal & José Alberto Molina & Alexandros Theloudis & Jorge Velilla, 2020. "Intrahousehold Commitment and Intertemporal Labor Supply," LISER Working Paper Series 2020-11, Luxembourg Institute of Socio-Economic Research (LISER).
    9. Denni Tommasi, 2015. "How Cash Transfers Improve Child Development," Working Papers ECARES ECARES 2015-19, ULB -- Universite Libre de Bruxelles.
    10. Marcos Rangel & Duncan Thomas, 2019. "Decision-Making in Complex Households," NBER Working Papers 26511, National Bureau of Economic Research, Inc.
    11. Chiappori, Pierre-André & Molina, José Alberto & Gimenez-Nadal, José Ignacio & Velilla, Jorge, 2019. "Intertemporal Labor Supply and Intra-Household Commitment," IZA Discussion Papers 12353, Institute of Labor Economics (IZA).
    12. José Alberto Molina & Jorge Velilla & Helena Ibarra, 2023. "Intrahousehold Bargaining Power in Spain: An Empirical Test of the Collective Model," Journal of Family and Economic Issues, Springer, vol. 44(1), pages 84-97, March.
    13. Du, Qingyuan & Wei, Shang-Jin, 2013. "A theory of the competitive saving motive," Journal of International Economics, Elsevier, vol. 91(2), pages 275-289.
    14. Reggio, Iliana, 2011. "The influence of the mother's power on her child's labor in Mexico," Journal of Development Economics, Elsevier, vol. 96(1), pages 95-105, September.
    15. LaFave, Daniel & Thomas, Duncan, 2017. "Extended families and child well-being," Journal of Development Economics, Elsevier, vol. 126(C), pages 52-65.
    16. Rama Lionel Ngenzebuke, 2016. "Female say on income and child outcomes: Evidence from Nigeria," WIDER Working Paper Series 134, World Institute for Development Economic Research (UNU-WIDER).
    17. Almås, Ingvild & Somville, Vincent, 2020. "The effect of gender-targeted transfers: Experimental Evidence from India," CEPR Discussion Papers 15218, C.E.P.R. Discussion Papers.
    18. Jonathan Robinson, 2012. "Limited Insurance within the Household: Evidence from a Field Experiment in Kenya," American Economic Journal: Applied Economics, American Economic Association, vol. 4(4), pages 140-164, October.
    19. John Ermisch & Chiara Pronzato, 2008. "Intra-Household Allocation of Resources: Inferences from Non-resident Fathers' Child Support Payments," Economic Journal, Royal Economic Society, vol. 118(527), pages 347-362, March.
    20. Laurens Cherchye & Thomas Demuynck & Bram De Rock & Frederic Vermeulen, 2017. "Household Consumption When the Marriage Is Stable," American Economic Review, American Economic Association, vol. 107(6), pages 1507-1534, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:deveco:v:139:y:2019:i:c:p:109-121. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/devec .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.