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American Economic Review Vol. 103 No. 1 2013

Children's Resources in Collective Households: Identification, Estimation, and an Application to Child Poverty in Malawi

Geoffrey R. Dunbar1; Arthur Lewbel2; Krishna Pendakur1

1 Simon Fraser University, 8888 University Drive, Burnaby, BC, Canada, V5A 1S6. · 2 Department of Economics, Boston College, 140 Commonwealth Ave., Chestnut Hill, MA, 02467, USA.

Abstract

The share of household resources devoted to children is hard to identify because consumption is measured at the household level and goods can be shared. Using semiparametric restrictions on individual preferences within a collective model, we identify how total household resources are divided up among household members by observing how each family member's expenditures on a single private good like clothing vary with income and family size. Using data from Malawi we show how resources devoted to wives and children vary by family size and structure, and we find that standard poverty indices understate the incidence of child poverty.

DOI
10.1257/aer.103.1.438
Volume
103
Issue
1
Pages
438-471
Language
en
Sources
openalex bibtex:phds-export.bib crossref

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