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Intra-Household Resource Allocation under Negative Income Shock: A Natural Experiment

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  • Mottaleb, Khondoker A.
  • Mohanty, Samarendu
  • Mishra, Ashok K.

Abstract

Using households from coastal districts in Bangladesh, as a case, and applying the difference-in-difference estimation method, this paper demonstrates a gender-differentiated outcome of negative income shocks for education expenditures of households. The cyclonic disaster that reduced crop income substantially increased the demand for labor as well as wages for rebuilding damaged farms. This in turn increased the opportunity costs of boys’ schooling, as reconstruction is a male-friendly sector. Consequently, parents withdrew their sons from school and engaged them in their households’ repair work and/or in wage-earning activities. However, girls’ schooling expenditure was unchanged in the affected farm and non-farm households.

Suggested Citation

  • Mottaleb, Khondoker A. & Mohanty, Samarendu & Mishra, Ashok K., 2015. "Intra-Household Resource Allocation under Negative Income Shock: A Natural Experiment," World Development, Elsevier, vol. 66(C), pages 557-571.
    • Handle: RePEc:eee:wdevel:v:66:y:2015:i:c:p:557-571
    DOI: 10.1016/j.worlddev.2014.09.012
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    6. Cameron, Lisa A & Worswick, Christopher, 2001. "Education Expenditure Responses to Crop Loss in Indonesia: A Gender Bias," Economic Development and Cultural Change, University of Chicago Press, vol. 49(2), pages 351-363, January.
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    Cited by:

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    2. Khan, Farid & Bedi, Arjun S. & Sparrow, Robert, 2015. "Sickness and Death: Economic Consequences and Coping Strategies of the Urban Poor in Bangladesh," World Development, Elsevier, vol. 72(C), pages 255-266.
    3. Francisco M. P. Mugizi, 2022. "Stronger together? Shocks, educational investment, and self-help groups in Tanzania," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 24(2), pages 511-548, December.
    4. Dang, Hai-Anh & Hallegatte, Stephane & Trinh, Trong-Anh, 2023. "Does Global Warming Worsen Poverty and Inequality? An Updated Review," IZA Discussion Papers 16570, Institute of Labor Economics (IZA).
    5. Chinh T. Mai & Akira Hibiki, 2023. "How Does Flood Affect Children Differently? The Impact of Flood on Children’s Education, Labor, Food Consumption, and Cognitive Development," CIRJE F-Series CIRJE-F-1211, CIRJE, Faculty of Economics, University of Tokyo.
    6. Zenou, Yves & Amarasinghe, Ashani & Raschky, Paul & Zhou, Junjie, 2020. "Conflicts in Spatial Networks," CEPR Discussion Papers 14300, C.E.P.R. Discussion Papers.
    7. Marion Dovis & Patricia Augier & Clémentine Sadania, 2021. "Labor Market Shocks and Youths’ Time Allocation in Egypt: Where Does Women’s Empowerment Come In?," Economic Development and Cultural Change, University of Chicago Press, vol. 69(4), pages 1501-1540.
    8. Asfaw, Solomon & Cattaneo, Andrea & Pallante, Giacomo & Palma, Alessandro, 2017. "Improving the efficiency targeting of Malawi's farm input subsidy programme: Big pain, small gain?," Food Policy, Elsevier, vol. 73(C), pages 104-118.
    9. Mottaleb, K. & Erenstein, O., 2018. "Gender Differentiated Impacts of Commodity Price Shocks on Households’ Consumption Behavior: A Natural Experiment," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 275915, International Association of Agricultural Economists.
    10. Mottaleb, Khondoker & Hodson, David, 2021. "Assessing Wheat Blast Induced Economic Loss in Bangladesh: A Natural Experiment," 2021 Conference, August 17-31, 2021, Virtual 315870, International Association of Agricultural Economists.

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