Culture and Human Capital Investments: Evidence of an Unconditional Cash Transfer Program in Bolivia
AbstractThis paper uses a policy quasi-experiment created by the introduction of an old-age unconditional cash transfer program in Bolivia to study the intra-household income allocation process towards children's educational expenditure by ethnicity and gender of the recipient. Taking advantage of a sharp discontinuity created by the program assignment mechanism, I investigate the heterogeneity in the patterns of allocation within indigenous, multiethnic, and non-indigenous families, conditional on having one elder and one school-age child living in the household. I find that cultural factors (proxied by ethnicity) count in the decision making process of human capital investments. In particular, the allocation of resources within indigenous families follows rules closely related to patriarchal family structures (in which women have limited decision-making power) and is consistent with unitary, dictatorial, and common preferences theoretical household models. Conversely, non-indigenous families follow decision rules more closely related to collective and bargaining behavior models.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3678.
Length: 23 pages
Date of creation: Sep 2008
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Find related papers by JEL classification:
- H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- I12 - Health, Education, and Welfare - - Health - - - Health Production
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-09-20 (All new papers)
- NEP-DEV-2008-09-20 (Development)
- NEP-EDU-2008-09-20 (Education)
- NEP-HRM-2008-09-20 (Human Capital & Human Resource Management)
- NEP-KNM-2008-09-20 (Knowledge Management & Knowledge Economy)
- NEP-LAB-2008-09-20 (Labour Economics)
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