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Income and bargaining effects on education and health

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  • Ponczek, Vladimir Pinheiro

Abstract

In this paper, we examine the impacts of the reform in the rural pension system in Brazil in 1991 on schooling and health indicators. In addition, we use the reform to investigate the validity of the unitary model of household allocation by testing if there were uneven impacts on those indicators depending on the gender of the recipient. The main conclusion of the paper is that the reform had significantly positive effects on the outcomes of interest, especially on those co-residing with a male pensioner, indicating that the unitary model is not a well-specified framework to understand family allocation decisions. The highest impacts were on school attendance for boys, literacy for girls and illness for middle-age people. We explore a collective model as defined by Chiappori (1992) as one possible alternative representation for the decision-making process of the poor rural Brazilian families. In the cooperative Nash equilibrium, the reform effects can be divided into two pieces: a direct income effect and bargaining power effect. The data support the existence of these two different effects

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  • Ponczek, Vladimir Pinheiro, 2010. "Income and bargaining effects on education and health," Textos para discussão 216, FGV EESP - Escola de Economia de São Paulo, Fundação Getulio Vargas (Brazil).
    • Handle: RePEc:fgv:eesptd:216
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    Cited by:

    1. Wang, Shing-Yi, 2014. "Property rights and intra-household bargaining," Journal of Development Economics, Elsevier, vol. 107(C), pages 192-201.
    2. Irineu Evangelista de Carvalho Filho, 2012. "Household Income as a Determinant of Child Labor and School Enrollment in Brazil: Evidence from a Social Security Reform," Economic Development and Cultural Change, University of Chicago Press, vol. 60(2), pages 399-435.
    3. Herrmann, Tabea & Leckcivilize, Attakrit & Zenker, Juliane, 2021. "The impact of cash transfers on child outcomes in rural Thailand: Evidence from a social pension reform," The Journal of the Economics of Ageing, Elsevier, vol. 19(C).
    4. Assunção, Juliano J. & Chein, Flávia, 2009. "Social Security and Rural Poverty in Brazil," Brazilian Review of Econometrics, Sociedade Brasileira de Econometria - SBE, vol. 29(2), December.
    5. Bruno Teodoro Oliva & André Portela Fernandes De Souza & Vladimir Pinheiro Ponczek, 2011. "Os Determinantes Do Fluxo Escolar Entreo Ensino Fundamental E O Ensino Médio No Brasil," Anais do XXXVIII Encontro Nacional de Economia [Proceedings of the 38th Brazilian Economics Meeting] 165, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].

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