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Is Extended Family in Low-Income Countries Altruistically Linked?

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  • Cheolsung Park

    () (National University of Singapore)

Abstract

Using a micro data from Bangladesh, this paper tests whether an extended family in low-income countries is altruistically linked. Based on theoretical implications of altruism model, the paper tests whether interhousehold transfer is negatively related to the recipient's income and whether consumption of each of related households is uncorrelated with its own income, controlling for pooled income of the family. Test results do not support altruism as the basis for familial economic ties in low-income countries. We fail to reject that transfer from father, child, or sibling is uncorrelated to the recipient's income or wealth in most cases; and households' non-food consumption is estimated to be strongly correlated with their own income and wealth, even after related households' pooled income is controlled for.

Suggested Citation

  • Cheolsung Park, 2001. "Is Extended Family in Low-Income Countries Altruistically Linked?," Departmental Working Papers wp0107, National University of Singapore, Department of Economics.
  • Handle: RePEc:nus:nusewp:wp0107
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    File URL: http://www.fas.nus.edu.sg/ecs/pub/wp/wp0107.pdf
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    References listed on IDEAS

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    Cited by:

    1. Mukhopadhyay, Ujjaini & Chaudhuri, Sarbajit, 2011. "Economic liberalization, gender wage inequality and welfare – a theoretical analysis," MPRA Paper 32954, University Library of Munich, Germany.

    More about this item

    Keywords

    altruism; interhousehold transfer; dynasty model; low-income country;

    JEL classification:

    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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