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Inside Beninese Households: How Spouses Manage their Personal Income

  • Philippe LeMay-Boucher
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    This paper draws on an original dataset collected in Benin which features data at the individual level. We first provide evidence that suggest that husband and wife are not pooling their respective incomes and thus are not making expenditure decisions on the basis of one common budget. As we show, husband and wife are secretive and are individually allocating their personal revenue on private and public goods. We look at a simple model that helps us predict determinants of spouses' pattern of consumptions. Our empirical results indicate that spouse's influence, through his/her income, is always smaller than one self's income impact on both personal private and public goods consumption. Moreover, we find that individual private goods consumption is isolated from spouse's income effect which is not the case for public goods consumption.

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    File URL: http://www.sml.hw.ac.uk/downloads/cert/wpa/2007/dp0705.pdf
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    Paper provided by Centre for Economic Reform and Transformation, Heriot Watt University in its series CERT Discussion Papers with number 0705.

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    Date of creation: 2007
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    Handle: RePEc:hwe:certdp:0705
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    1. Doss, Cheryl R., 1996. "Testing among models of intrahousehold resource allocation," World Development, Elsevier, vol. 24(10), pages 1597-1609, October.
    2. Stefan Dercon & Pramila Krishnan, 2000. "In Sickness and in Health: Risk Sharing within Households in Rural Ethiopia," Journal of Political Economy, University of Chicago Press, vol. 108(4), pages 688-727, August.
    3. John G. McPeak & Cheryl R. Doss, 2006. "Are Household Production Decisions Cooperative? Evidence on Pastoral Migration and Milk Sales from Northern Kenya," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(3), pages 525-541.
    4. Lundberg, S.J. & Pollak, R.A. & Wales, T.J., 1994. "Do Husbands and Wives Pool Their Resources? Evidence from U.K. Child Benefit," Discussion Papers in Economics at the University of Washington 94-6, Department of Economics at the University of Washington.
    5. Chiappori, Pierre-Andre, 1988. "Rational Household Labor Supply," Econometrica, Econometric Society, vol. 56(1), pages 63-90, January.
    6. Thomas, D., 1992. "The Distribution of Income and Expenditure within the Household," Papers 669, Yale - Economic Growth Center.
    7. James H. Stock & Motohiro Yogo, 2002. "Testing for Weak Instruments in Linear IV Regression," NBER Technical Working Papers 0284, National Bureau of Economic Research, Inc.
    8. Olivier Dagnelie & Philippe LeMay-Boucher, 2007. "ROSCA Participation in Benin: A Commitment Issue," CERT Discussion Papers 0708, Centre for Economic Reform and Transformation, Heriot Watt University.
    9. Haddad, Lawrence & Hoddinott, John, 1994. "Women's income and boy-girl anthropometric status in the Cote d'Ivoire," World Development, Elsevier, vol. 22(4), pages 543-553, April.
    10. Duncan Thomas, 1990. "Intra-Household Resource Allocation: An Inferential Approach," Journal of Human Resources, University of Wisconsin Press, vol. 25(4), pages 635-664.
    11. 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).
    12. Manser, Marilyn & Brown, Murray, 1980. "Marriage and Household Decision-Making: A Bargaining Analysis," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 21(1), pages 31-44, February.
    13. Hallman, Kelly, 2000. "Mother-father resource control, marriage payments, and girl-boy health in rural Bangladesh," FCND briefs 93, International Food Policy Research Institute (IFPRI).
    14. Hallman, Kelly, 2000. "Mother-father resource control, marriage payments, and girl-boy health in rural Bangladesh," FCND discussion papers 93, International Food Policy Research Institute (IFPRI).
    15. Chiappori, P.A., 1989. "Collective Labour Supply and Welfare," DELTA Working Papers 89-07, DELTA (Ecole normale supérieure).
    16. Kreps, David M., 1990. "Game Theory and Economic Modelling," OUP Catalogue, Oxford University Press, number 9780198283812.
    17. Philippe LeMay-Boucher, 2007. "Insurance for the Poor: The Case of Informal Insurance Groups in Benin," CERT Discussion Papers 0707, Centre for Economic Reform and Transformation, Heriot Watt University.
    18. Agnes R. Quisumbing & John A. Maluccio, 2003. "Resources at Marriage and Intrahousehold Allocation: Evidence from Bangladesh, Ethiopia, Indonesia, and South Africa," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 65(3), pages 283-327, 07.
    19. Udry, Christopher, 1996. "Gender, Agricultural Production, and the Theory of the Household," Journal of Political Economy, University of Chicago Press, vol. 104(5), pages 1010-46, October.
    20. Doss, Cheryl R, 2001. "Is Risk Fully Pooled within the Household? Evidence from Ghana," Economic Development and Cultural Change, University of Chicago Press, vol. 50(1), pages 101-30, October.
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