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Investments, Time Preferences, and Public Transfers Paid to Women

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  • Luis Rubalcava
  • Graciela Teruel
  • Duncan Thomas

Abstract

The literature suggests that men and women may have different preferences. This paper exploits a social experiment in which women in treatment households were given a large public cash transfer (PROGRESA). In an effort to disentangle the effect of additional income in the household from the effect of changing the distribution of income within the household, the impact of PROGRESA income on savings and investments decisions is compared with all other income sources (after taking into account participation in the program). Additional money in the hands of women is spent on small livestock (which are traditionally managed and cared for by women), improved nutrition, and child goods (particularly clothing). Among single-headed households, PROGRESA income is not treated differently from other income. Direct evidence on intertemporal preferences gathered in the Mexican Family Life Survey indicates that women are more patient than men when thinking about the future. Taken together, the results suggest that PROGRESA income results in a shift in the balance of power within households and that women allocated more resources toward investments in the future. (c) 2009 by The University of Chicago. All rights reserved..

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Bibliographic Info

Article provided by University of Chicago Press in its journal Economic Development and Cultural Change.

Volume (Year): 57 (2009)
Issue (Month): 3 (04)
Pages: 507-538

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Handle: RePEc:ucp:ecdecc:v:57:y:2009:i:3:p:507-538

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Web page: http://www.journals.uchicago.edu/EDCC/

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Cited by:
  1. Matthias Doepke & Michèle Tertilt, 2010. "Does Female Empowerment Promote Economic Development?," Working Papers id:3189, eSocialSciences.
  2. Andalón, Mabel & Williams, Jenny & Grossman, Michael, 2014. "Empowering Women: The Effect of Schooling on Young Women's Knowledge and Use of Contraception," IZA Discussion Papers 7900, Institute for the Study of Labor (IZA).
  3. Kyeong Ho Lee & Marc F. Bellemare, 2013. "Look Who's Talking: The Impacts of the Intrahousehold Allocation of Mobile Phones on Agricultural Prices," Journal of Development Studies, Taylor & Francis Journals, vol. 49(5), pages 624-640, May.
  4. van den Bold, Mara & Quisumbing, Agnes R. & Gillespie, Stuart, 2013. "Women’s empowerment and nutrition: An evidence review:," IFPRI discussion papers 1294, International Food Policy Research Institute (IFPRI).
  5. Bauer, Michal & Chytilová, Julie, 2009. "Women, Children and Patience: Experimental Evidence from Indian Villages," IZA Discussion Papers 4241, Institute for the Study of Labor (IZA).
  6. Gustavo J Bobonis & Roberto Castro & Melissa Gonzalez-Brenes, 2009. "Public Transfers and Domestic Violence: The Roles of Private Information and Spousal Control," Working Papers tecipa-362, University of Toronto, Department of Economics.
  7. Kohlin, Gunnar & Sills, Erin O. & Pattanayak, Subhrendu K. & Wilfong, Christopher, 2011. "Energy, gender and development: what are the linkages ? where is the evidence ?," Policy Research Working Paper Series 5800, The World Bank.
  8. Chiappori, Pierre-André & Iyigun, Murat & Weiss, Yoram, 2008. "An Assignment Model with Divorce and Remarriage," IZA Discussion Papers 3892, Institute for the Study of Labor (IZA).
  9. Jere Behrman & Susan Parker, 2013. "Is Health of the Aging Improved by Conditional Cash Transfer Programs? Evidence From Mexico," Demography, Springer, vol. 50(4), pages 1363-1386, August.
  10. Luc Christiaensen & Lei Pan, 2010. "Transfers and Development: Easy Come, Easy Go?," Working Paper Series wp2010-125, World Institute for Development Economic Research (UNU-WIDER).
  11. Angelucci, Manuela, 2007. "Love on the Rocks: Alcohol Abuse and Domestic Violence in Rural Mexico," IZA Discussion Papers 2706, Institute for the Study of Labor (IZA).
  12. Jaime Andrés Sarmiento Espinel, 2012. "Parental investment in their children’s education," Serie documentos de trabajo del Centro de Estudios Económicos 2012-09, El Colegio de México, Centro de Estudios Económicos.

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