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Is Knowledge Shared within Households? Theory and Evidence for Bangladesh

Author

Listed:
  • Kaushik Basu
  • Ambar Narayan
  • Martin Ravallion

    (World Bank)

Abstract

A member of a collective-action household may or may not share knowledge with others in that household. Shared income gains from shared knowledge may well be offset by a shift in the balance of power within the family. Using household survey data for Bangladesh we find strong external effects of education on individual earnings. Holding a range of personal attributes constant, an illiterate adult earns significantly more in the non-farm economy when living in a family with at least one literate member. These effects are strongest, and most robust, for women. Omitted-variable bias cannot be ruled out, but would also be consistent with an intra-household externality of literacy.

Suggested Citation

  • Kaushik Basu & Ambar Narayan & Martin Ravallion, 2001. "Is Knowledge Shared within Households? Theory and Evidence for Bangladesh," Working Papers 82, Institute for Social and Economic Change, Bangalore.
  • Handle: RePEc:sch:wpaper:82
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    File URL: http://www.isec.ac.in/Is_knowledge_shared_within_household.pdf
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    Cited by:

    1. Deshpande, Ashwini & Desrochers, Alain & Ksoll, Christopher & Shonchoy, Abu S., 2017. "The Impact of a Computer-based Adult Literacy Program on Literacy and Numeracy: Evidence from India," World Development, Elsevier, vol. 96(C), pages 451-473.

    More about this item

    Keywords

    Household behaviour; Literacy; Externalities; Income; Bangladesh;

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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