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Household Allocations and Endogenous Information

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  • Joost de Laat
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    Abstract

    This paper tests for the endogeneity of one of the main elements separating different models of intrahousehold allocations, namely the household information set. Based on unusually rich data, I find that split migrant couples in the Nairobi slums invest considerable resources into information acquisition through visits, sibling and child monitoring, budget submissions, and marital search. I also find potentially substantial welfare losses when information acquisition becomes costly, not only through reduced remittances but more importantly as families opt for family migration into the slums. That households invest in information when there are welfare gains complements a large and growing literature that seeks to explain intrahousehold allocations through more complex modes of decision-making.

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    File URL: http://www.cirpee.org/fileadmin/documents/Cahiers_2008/CIRPEE08-27.pdf
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    Bibliographic Info

    Paper provided by CIRPEE in its series Cahiers de recherche with number 0827.

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    Date of creation: 2008
    Date of revision:
    Handle: RePEc:lvl:lacicr:0827

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    Related research

    Keywords: Survey Methods; Household production and Intrahousehold Allocation; Marriage; Family Structure; Migration;

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    1. Dubois, Pierre & Ligon, Ethan A., 2011. "Incentives and nutrition for rotten kids: intrahousehold food allocation in the Philippines," CUDARE Working Paper Series 1114, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy.
    2. Ted Bergstrom, 1995. "A Survey of Theories of the Family," Papers _027, University of Michigan, Department of Economics.
    3. Carmichael, H Lorne & MacLeod, W Bentley, 1997. "Gift Giving and the Evolution of Cooperation," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 38(3), pages 485-509, August.
    4. Canice Prendergast, 1999. "The Provision of Incentives in Firms," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 7-63, March.
    5. Elizabeth Francis, 1998. "Gender and rural livelihoods in Kenya," Journal of Development Studies, Taylor & Francis Journals, vol. 35(2), pages 72-95.
    6. Andrew D. Foster & Mark R. Rosenzweig, 2001. "Imperfect Commitment, Altruism, And The Family: Evidence From Transfer Behavior In Low-Income Rural Areas," The Review of Economics and Statistics, MIT Press, vol. 83(3), pages 389-407, August.
    7. Ronald A. Dye, 1986. "Optimal Monitoring Policies in Agencies," RAND Journal of Economics, The RAND Corporation, vol. 17(3), pages 339-350, Autumn.
    8. Weiss, Y., 1992. "The Formation and Dissolution of Families: Why Marry? Who Marries Whom ? and What Happens Upon Marriage and Divorce," University of Chicago - Economics Research Center, Chicago - Economics Research Center 92-7, Chicago - Economics Research Center.
    9. Siwan Anderson, 2000. "The Economics of Roscas and Intra-Household Resource Allocation," Econometric Society World Congress 2000 Contributed Papers 1323, Econometric Society.
    10. repec:cdl:agrebk:2221195 is not listed on IDEAS
    11. Udry, Christopher, 1996. "Gender, Agricultural Production, and the Theory of the Household," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 104(5), pages 1010-46, October.
    12. Lundberg, S. & Pollak, R.A., 1991. "Separate Spheres Bargaining and the Marriage Market," Working Papers, University of Washington, Department of Economics 91-08, University of Washington, Department of Economics.
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    Cited by:
    1. Dean Yang, 2009. "International Migration and Human Development," Human Development Research Papers (2009 to present) HDRP-2009-29, Human Development Report Office (HDRO), United Nations Development Programme (UNDP), revised Jul 2009.
    2. De Arcangelis, Giuseppe & Joxhe, Majlinda & McKenzie, David & Tiongson, Erwin & Yang, Dean, 2014. "Directing remittances to education with soft and hard commitments : evidence from a lab-in-the-field experiment and new product take-up among Filipino migrants in Rome," Policy Research Working Paper Series 6896, The World Bank.
    3. Akresh, Richard & Edmonds, Eric V., 2010. "The Analytical Returns to Measuring a Detailed Household Roster," IZA Discussion Papers 4759, Institute for the Study of Labor (IZA).
    4. Nava Ashraf & Diego Aycinena & Claudia Martinez & Dean Yang, 2014. "Savings in Transnational Households: A Field Experiment among Migrants from El Salvador," NBER Working Papers 20024, National Bureau of Economic Research, Inc.

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