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Costly posturing: Relative status, ceremonies and early child development

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  • Chen, Xi
  • Zhang, Xiaobo

Abstract

Though social spending facilitates risk-pooling in the impoverished regions, too many resources devoted to social occasions may impose negative externalities and hinder efforts to alleviate poverty for households living close to subsistence. Conducting three waves census-type panel survey in rural western China with well-defined reference groups and detailed information on social occasions, gift exchanges, nutrients intake and health outcomes, we find that the squeeze effect originated from lavish ceremonies is associated with lower height-for-age zscore, higher probability of stunting and underweight in early child development. The lasting impact suggests that 'catch up' is limited. The squeeze is stronger for the fetal period and towards the lower tail of the distribution. Specifically, 39.2%, 33.3% and 64.6% of the sampled households suffer from net squeeze effect on stunting, underweight and lower height-for-age zscore, respectively. The squeeze effect is stronger for 1-3 age cohorts and between 2007 and 2009. We provide suggestive evidence on the intermediate pathways linking social events with poor health outcomes, such as share of food expenditure and basic nutrients intake. Our findings suggest more efficient policy interventions that target the households with pregnant women and of lower social rankings.

Suggested Citation

  • Chen, Xi & Zhang, Xiaobo, 2011. "Costly posturing: Relative status, ceremonies and early child development," IAMO Forum 2011: Will the "BRICs Decade" Continue? – Prospects for Trade and Growth 7, Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO).
  • Handle: RePEc:zbw:iamo11:7
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    References listed on IDEAS

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    1. Harold Alderman & John Hoddinott & Bill Kinsey, 2006. "Long term consequences of early childhood malnutrition," Oxford Economic Papers, Oxford University Press, vol. 58(3), pages 450-474, July.
    2. Fafchamps, Marcel & Shilpi, Forhad, 2008. "Subjective welfare, isolation, and relative consumption," Journal of Development Economics, Elsevier, vol. 86(1), pages 43-60, April.
    3. Thomas, Duncan & Strauss, John, 1997. "Health and wages: Evidence on men and women in urban Brazil," Journal of Econometrics, Elsevier, vol. 77(1), pages 159-185, March.
    4. Horton, Susan, 1988. "Birth Order and Child Nutritional Status: Evidence from the Philippines," Economic Development and Cultural Change, University of Chicago Press, vol. 36(2), pages 341-354, January.
    5. Carlos Bozzoli & Angus S. Deaton & Climent Quintana-Domeque, 2007. "Child Mortality, Income and Adult Height," NBER Working Papers 12966, National Bureau of Economic Research, Inc.
    6. Brown, Philip H. & Bulte, Erwin & Zhang, Xiaobo, 2011. "Positional spending and status seeking in rural China," Journal of Development Economics, Elsevier, vol. 96(1), pages 139-149, September.
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    Cited by:

    1. Chen, Xi & Kanbur, Ravi & Zhang, Xiaobo, 2011. "Peer effects, risk pooling, and status seeking: What explains gift spending escalation in rural China?," IFPRI discussion papers 1151, International Food Policy Research Institute (IFPRI).
    2. repec:spr:sochwe:v:49:y:2017:i:3:d:10.1007_s00355-017-1029-9 is not listed on IDEAS
    3. Chen, Xi, 2011. "Accounting for social spending escalation in rural China," IAMO Forum 2011: Will the "BRICs Decade" Continue? – Prospects for Trade and Growth 6, Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO).
    4. Chen, Xi, 2013. "Relative Deprivation in China," MPRA Paper 48582, University Library of Munich, Germany.
    5. Chen, Xi, 2014. "Gift-giving and Network Structure in Rural China: Utilizing Long-term Spontaneous Gift Records," IZA Discussion Papers 8642, Institute for the Study of Labor (IZA).

    More about this item

    Keywords

    Relative Status; Squeeze Effect; Nutrients Intake; Stunting; Underweight; Gender;

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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