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Intra-Household Resource Allocation under Negative Income Shock: A Natural Experiment

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  • Mottaleb, Khondoker A.
  • Mohanty, Samarendu
  • Mishra, Ashok K.

Abstract

Using households from coastal districts in Bangladesh, as a case, and applying the difference-in-difference estimation method, this paper demonstrates a gender-differentiated outcome of negative income shocks for education expenditures of households. The cyclonic disaster that reduced crop income substantially increased the demand for labor as well as wages for rebuilding damaged farms. This in turn increased the opportunity costs of boys’ schooling, as reconstruction is a male-friendly sector. Consequently, parents withdrew their sons from school and engaged them in their households’ repair work and/or in wage-earning activities. However, girls’ schooling expenditure was unchanged in the affected farm and non-farm households.

Suggested Citation

  • Mottaleb, Khondoker A. & Mohanty, Samarendu & Mishra, Ashok K., 2015. "Intra-Household Resource Allocation under Negative Income Shock: A Natural Experiment," World Development, Elsevier, vol. 66(C), pages 557-571.
  • Handle: RePEc:eee:wdevel:v:66:y:2015:i:c:p:557-571
    DOI: 10.1016/j.worlddev.2014.09.012
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    References listed on IDEAS

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    1. Shahidur R. Khandker, 2007. "Coping with flood: role of institutions in Bangladesh," Agricultural Economics, International Association of Agricultural Economists, vol. 36(2), pages 169-180, March.
    2. Sarker, Md. Abdur Rashid & Alam, Khorshed & Gow, Jeff, 2012. "Exploring the relationship between climate change and rice yield in Bangladesh: An analysis of time series data," Agricultural Systems, Elsevier, vol. 112(C), pages 11-16.
    3. Robert Jensen, 2000. "Agricultural Volatility and Investments in Children," American Economic Review, American Economic Association, vol. 90(2), pages 399-404, May.
    4. Cameron, Lisa A & Worswick, Christopher, 2001. "Education Expenditure Responses to Crop Loss in Indonesia: A Gender Bias," Economic Development and Cultural Change, University of Chicago Press, vol. 49(2), pages 351-363, January.
    5. Tansel, Aysit, 2002. "Determinants of school attainment of boys and girls in Turkey: individual, household and community factors," Economics of Education Review, Elsevier, vol. 21(5), pages 455-470, October.
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    Cited by:

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    2. Khan, Farid & Bedi, Arjun S. & Sparrow, Robert, 2015. "Sickness and Death: Economic Consequences and Coping Strategies of the Urban Poor in Bangladesh," World Development, Elsevier, vol. 72(C), pages 255-266.
    3. Asfaw, Solomon & Cattaneo, Andrea & Pallante, Giacomo & Palma, Alessandro, 2017. "Improving the efficiency targeting of Malawi's farm input subsidy programme: Big pain, small gain?," Food Policy, Elsevier, vol. 73(C), pages 104-118.
    4. Mottaleb, K. & Erenstein, O., 2018. "Gender Differentiated Impacts of Commodity Price Shocks on Households’ Consumption Behavior: A Natural Experiment," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 275915, International Association of Agricultural Economists.

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