Gender-Bias in Intra-household Allocation: The Importance of Household Fixed Effects
This paper presents an analysis of gender patterns in intra-household allocation of resources based on household level consumption data. Invoking the assuption that households seek to equalize the marginal utility of expenditures when they allocate resources over the life-cylcle, the paper provides a rationale for parental behaviour pertaining to the intertemporal allocation of goods among children. Estimation results based on panel data from India show that controlling for the unobserved household fixed effects is of crucial importance. Once allowance is made for fixed effects, the results indicate that there is no gender-bias in the allocation of resources.
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|Date of creation:||Oct 1994|
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