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Social Transfers As A Determinant Of Intrahousehold Distribution: The Case Of Chile

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  • Cuesta, Jose

Abstract

The effects of social transfers on individual participation and working hours are theoretically shown to differ for unitary and bargaining intrahousehold allocation models. This result is attributed to both the non-transferability of in-kind social transfers and differences in control of these transfers among household members. Using elasticities of social transfers on work effort (estimated through sample selection corrected participation probits and working hour OLS), new tests on intrahousehold allocation are developed for Chile. These tests strongly reject the unitary model and exogenous bargaining, accepting endogenous bargaining only among non-poor households. Poor households may use social incomes as investments for the future rather than for short-term strategic power relations.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 12410.

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Date of creation: Aug 2004
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Publication status: Published in Journal of Income Distribution 1/2.12(2004): pp. 76-104
Handle: RePEc:pra:mprapa:12410

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Keywords: Social Transfers; Intrahousehold Allocation Rules; Labor Supply; Chile;

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References

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  1. Browning, M. & Bourguignon, F. & Chiappori, P.A. & Lechene, V., 1992. "Incomes and Outcomes: A structural Model of Intra-Household Allocation," DELTA Working Papers 92-23, DELTA (Ecole normale supérieure).
  2. Rao, Vijayendra, 1997. "Wife-beating in rural South India: A qualitative and econometric analysis," Social Science & Medicine, Elsevier, vol. 44(8), pages 1169-1180, April.
  3. T. Paul Schultz, 1990. "Testing the Neoclassical Model of Family Labor Supply and Fertility," Journal of Human Resources, University of Wisconsin Press, vol. 25(4), pages 599-634.
  4. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
  5. Hausman, Jerry A, 1985. "The Econometrics of Nonlinear Budget Sets," Econometrica, Econometric Society, vol. 53(6), pages 1255-82, November.
  6. Juster, F Thomas & Stafford, Frank P, 1991. "The Allocation of Time: Empirical Findings, Behavioral Models, and Problems of Measurement," Journal of Economic Literature, American Economic Association, vol. 29(2), pages 471-522, June.
  7. Killingsworth, Mark R. & Heckman, James J., 1987. "Female labor supply: A survey," Handbook of Labor Economics, in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 1, chapter 2, pages 103-204 Elsevier.
  8. Luis Rubalcava & Dante Contreras, 2000. "Does Gender and Birth Order Matter when Parents Specialize in Child’s Nutrition? Evidence from Chile," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 353-386, November.
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Cited by:
  1. Cuesta, Jose, 2006. "The distributive consequuences of machismo: A simulation analysis of intrahousehold allocation," MPRA Paper 11243, University Library of Munich, Germany.
  2. José Cuesta, 2006. "The distributive consequences of machismo : a simulation analysis of intra-household discrimination," Journal of International Development, John Wiley & Sons, Ltd., vol. 18(8), pages 1065-1080.

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