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Saving for dowry: Evidence from rural India

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  • Anukriti, S.
  • Kwon, Sungoh
  • Prakash, Nishith

Abstract

The ancient custom of dowry, i.e., bride-to-groom marriage payments, remains ubiquitous in many contemporary societies. Using data from 1986–2007, this paper examines whether dowry impacts intertemporal resource allocation and other household decisions in rural India. Utilizing variation in firstborn gender and dowry amounts across marriage markets, we find that the prospect of higher dowry payments at the time of a daughter’s marriage leads parents to save more in advance. The higher savings are primarily financed through increased paternal labor supply. This implies that people are farsighted; they work and save more today with payoff in the distant future.

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  • Anukriti, S. & Kwon, Sungoh & Prakash, Nishith, 2022. "Saving for dowry: Evidence from rural India," Journal of Development Economics, Elsevier, vol. 154(C).
    • Handle: RePEc:eee:deveco:v:154:y:2022:i:c:s0304387821001176
    DOI: 10.1016/j.jdeveco.2021.102750
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    Cited by:

    1. Lucia Corno & Nicole Hildebrandt & Alessandra Voena, 2020. "Age of Marriage, Weather Shocks, and the Direction of Marriage Payments," Econometrica, Econometric Society, vol. 88(3), pages 879-915, May.
    2. Siwan Anderson & Chris Bidner, 2021. "An Institutional Perspective on the Economics of the Family," Discussion Papers dp21-14, Department of Economics, Simon Fraser University.
    3. Bao, Yan Xi & Liao, Ting Xuan, 2021. "Capability Approach: Reconciling the Absolute Core and the Multidimensional Relative Poverty Measures," MPRA Paper 111333, University Library of Munich, Germany.
    4. Somville, Vincent & Vandewalle, Lore, 2023. "Access to banking, savings and consumption smoothing in rural India," Journal of Public Economics, Elsevier, vol. 223(C).
    5. Chiplunkar, Gaurav & Weaver, Jeffrey, 2023. "Marriage markets and the rise of dowry in India," Journal of Development Economics, Elsevier, vol. 164(C).
    6. Lnu,Anukriti & Erten,Bilge & Mukherjee,Priya, 2022. "Women’s Political Representation and Intimate Partner Violence," Policy Research Working Paper Series 10113, The World Bank.
    7. Abhilasha Srivastava & John Willoughby, 2023. "Capital, Caste, and Patriarchy: Theory of Marriage Formation in India," Review of Radical Political Economics, Union for Radical Political Economics, vol. 55(1), pages 47-69, March.

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    More about this item

    Keywords

    Dowry; Marriage payments; India; Savings; Labor supply;
    All these keywords.

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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