Women as agents of change: Female income and mobility in India

Economic globalization will give many women in developing countries access to steady and relatively remunerative employment for the first time, potentially shifting bargaining power within their households and changing the choices that are made for their children. This paper exploits a unique setting — a group of tea plantations in South India where women are employed in permanent wage labor and where incomes do not vary by caste — to anticipate the impact of globalization on mobility across social groups in the future. The main result of the paper is that a relative increase in female income weakens the family's ties to the ancestral community and the traditional economy, but these mobility enhancing effects are obtained for certain historically disadvantaged castes alone. Although the paper provides a context-specific explanation for why the women from these castes emerge as agents of change, the first general implication of the analysis is that the incentive and the ability of women to use their earnings to influence household decisions depends importantly on their social background. The second implication is that historically disadvantaged groups may, in fact, be especially responsive to new opportunities precisely because they have fewer ties to the traditional economy to hold them back.     

The Distribution of Household Health Expenditures in Australia*

Out‐of‐pocket health expenditures in Australia are high in international comparisons and have been growing at a faster rate than most other health costs in recent years. This raises concerns about the extent to which out‐of‐pocket costs have constrained access to health services for low income households. Using data from the ABS Household Expenditure Survey 2003–2004, we model the relationships between health expenditure shares and equivalised total expenditure for categories of out‐of‐pocket health expenditures and analyse the extent of protection given by concession cards. To allow for flexibility in the relationship we adopt Yatchew's semi‐parametric estimation technique. This is the first detailed distributional analysis of household health expenditures in Australia. We find mixed evidence for the protection health concession cards give against high out‐of‐pocket health expenditures. Despite higher levels of subsidy, households with concession cards do not have lower out‐of‐pocket expenditures than non‐cardholder households except for the highest expenditure quintile. Cards provide most protection for GP out‐of‐pocket expenditures.     

Does the relationship between income and child health differ across income groups? Evidence from India

This study explores the relationship between child health and socioeconomic status (health-income gradient) using the Indian Human Development Survey-II (2011-12) for children up to 5 years of age. Unlike previous studies our empirical analysis allows the gradient to vary across different income intervals using linear and cubic spline regressions. We use objective measure of child health - height-for-age Z-scores and find that an increase in income, on an average leads to reduction in prevalence of stunting. We also find differential effect of income on health across the income distribution with no effect of income on child health for very poor households. Further we explore underlying factors explaining the gradient and find that maternal health, housing quality, sanitation, non-infectious environment, media exposure to women and a safe neighbourhood are transmission channels that affect child health and together they explain almost 40% of the overall income effect. One of the major implication of our findings is that any policy to increase income of poor households should be complemented with a health policy designed specifically towards children as poor households are less likely to allocate additional income to child health.     

Applying for social programs in India: Roles of local politics and caste networks in affirmative action

India has among the most extensive affirmative action programs in the world. Depending on the State, up to 50% of jobs in the public sector are reserved for members of low castes. However, recruitment is highly discretionary, making it hard for low castes without connections to access reserved jobs and thereby benefit from affirmative action. This paper studies how having a local elected leader from the same caste affects the probability of applying for reserved jobs. The identification strategy focuses on the political reservation system at the village level that determines the caste group of the local elected leader. Taking data from three States in South India, I find that households are more likely to apply when the local elected leader is from their caste group. The evidence suggests that the impact is driven by updated beliefs regarding the probability of a successful application.     

INFLATION INEQUALITY IN THE UNITED STATES

Different spending patterns across households and differences in price increases across goods and services lead to unequal levels of inflation faced by different households. In this paper we measure the degree of inequality in inflation across U.S. households for the period 1987–2000. The broad picture that emerges from our results is that over our whole sample period there are substantial differences in the inflation experiences across U.S. households. We find that the cost of living increases were generally higher for the elderly, in large part because of their health care expenditures, and that the cost of living of poor households is most sensitive to the, historically large, fluctuations in gasoline prices. Still, when looking at the whole population, we find that individual households that are confronted with high inflation in one year do not generally face high inflation in the subsequent year as well.     

Anthropometric failure and persistence of poverty in rural India

Recent studies have drawn attention to the high prevalence of stunting among children in rural India. In fact, these estimates point to more pervasive deprivation than conventional measures of poverty based on income or consumption expenditure shortfalls imply. Since stunting reflects cumulative nutritional and health deprivation, it is likely to persist despite higher incomes. With a view to shedding some new light on this issue, an analysis of the determinants of stunting is carried out, based on a recent all‐India survey of rural households. While income matters, other factors acting independently of it matter too. These include household size, whether household head is male, caste affiliation, mother’s age at marriage, mother’s age, age composition of children, male–female wage differences, hygiene and sanitation facilities, and prices of food items. So, while higher incomes will help mitigate stunting, careful attention must also be given to enhancing women’s autonomy through more remunerative employment opportunities for them, enabling households to improve hygiene and sanitation facilities, and facilitating more competitive local markets for food.     

Who Faces Higher Prices? An Empirical Analysis Based on Japanese Homescan Data

On the basis of household‐level scanner data (called homescan data) for Japan, we construct a household‐level price index and investigate the causes of price differences across households. We observe large price differentials across households, a result that is consistent with the previous research based on the data in the USA. However, the differences across age and income groups are small. In addition, we find that elderly people face higher prices than the younger ones, which is contrary to the results of the previous research. The most important determinant of the price level is the extent to which households rely on bargain sales; doubling purchases of goods at bargain sales decreases the price level by about 2%, while shopping frequency only has a limited effect on the price level.     

Wars and Child Health: Evidence from the Eritrean-Ethiopian Conflict

Conflict between and within countries can have lasting health and economic consequences, but identifying such effects can be empirically challenging. This paper uses household survey data from Eritrea to estimate the effect of exposure to the 1998-2000 Eritrea-Ethiopia war on children's health. The identification strategy exploits exogenous variation in the conflict's geographic extent and timing and the exposure of different birth cohorts to the fighting. The unique survey data include details on each household's migration history, which allows us to measure a child's geographic location during the war and without which war exposure would be incorrectly classified. War-exposed children have lower height-for-age Z-scores, with similar effects for children born before or during the war. Both boys and girls who are born during the war experience negative impacts due to conflict. Effects are robust to including region-specific time trends, alternative conflict exposure measures, and mother fixed effects.     

Effects of Health on Wages of Australian Men

This study uses the Household, Income and Labour Dynamics in Australia (HILDA) survey to investigate the effect of health on wages of working-age Australian men. A simultaneous equation model of health and wages is estimated to account for the endogeneity of health. The results confirm the findings in the literature that health has a significant and positive effect on wages; it is also found that treating health as exogenous underestimates the effect substantially. Although the reverse effect of wages on health is found to be insignificant, there is evidence on the endogeneity of health arising from unobserved factors.     

Caste, Inequality, and Poverty in India

This paper analyses inequality and poverty in India within the context of caste‐based discrimination. It does so by decomposing the difference between (caste) Hindu and Scheduled Caste (SC) and Scheduled Tribe (ST) households in: their average household incomes; their probabilities of being in different income percentiles; their probabilities of being at different levels of poverty into: a “discrimination effect”, which stems from the fact that a household's income level, into which its (income‐generating) profile translates, depends on whether it is SC/ST; an “attributes (or residual) effect” which stems from the fact that there are systematic differences between SC/ST and Hindu households in their (income‐generating) profiles. The results, based on unit record data for 28,922 households, showed that at least one‐third of the average income/probability differences between Hindu and SC/ST households was due to the “unequal treatment” of the latter.     

城镇低保户医疗服务利用和医疗保障制度设计对就医行为的影响——基于兰州、西宁和白银城镇家庭调查数据的分析

解决低保户看病难问题事关社会底线公平。文章基于2005年三个西北城市的17 690个样本对低保户就医问题展开实证研究,分析结果表明,由于中国医疗机构扭曲的激励机制和偏重住院报销的给付结构,低保户和非低保户两个群体都倾向于自己购药处理日常病患,而减少了门诊利用,经常面临生存危机的低保户由此拖延病情直至病情严重;个人账户既不能横向分散不同人群的疾病风险,也不能纵向分散个人在生命周期不同阶段的疾病风险;职工基本医疗保险能够显著增加中青年低保户对住院服务的利用,但对老龄低保户没有效果。     

POVERTY IN RURAL INDIA: CASTE AND TRIBE

This paper analyzes the determinants of rural poverty in India, contrasting the situation of scheduled caste (SC) and scheduled tribe (ST) households with the non-scheduled population. The incidence of poverty in SC and ST households is much higher than among non-scheduled households. By combining regression estimates for the ratio of per capita expenditure to the poverty line and an Oaxaca-type decomposition analysis, we study how these differences in the incidence of poverty arise. We find that for SC households, differences in characteristics explain the gaps in poverty incidence more than differences in transformed regression coefficients. In contrast, for ST households, differences in the transformed regression coefficients play the more important role.     

Methods of household consumption measurement through surveys: Experimental results from Tanzania

Surveys of consumption expenditure vary widely across many dimensions, including the level of reporting, the length of the reference period, and the degree of commodity detail. These variations occur both across countries and also over time within countries, with little current understanding of the implications of such changes for spatially and temporally consistent measurement of household consumption and poverty. A field experiment in Tanzania tests eight alternative methods of measuring household consumption, finding significant differences between consumption reported by the benchmark personal diary and other diary and recall formats. Under-reporting is particularly apparent for illiterate households and for urban respondents completing household diaries; recall modules measure lower consumption than a personal diary, with larger gaps among poorer households and for households with more adult members. Variations in reporting accuracy by household characteristics are also discussed and differences in measured poverty as a result of survey design are explored.     

Sick of work or too sick to work? Evidence on self-reported health shocks and early retirement from the BHPS

We follow individuals as they retire using discrete-time hazard models applied to a stock sample from 12 waves of the British Household Panel Survey. We use a generalised ordered probit model to explore the existence of reporting bias and to purge the self-reported measure of health of this bias. This model takes into account the possibility that anticipated retirement may influence reporting of health. There is evidence that health shocks are a determinant of retirement age. This is the case for both men and women and is observed for both health limitations and a measure based on latent health status derived from the generalised ordered probit model. While the size of the health effect varies according to how we measure health, the relative effect is large compared to the other variables, and in particular when compared to the effects of private pensions. However numerical simulations show that this high hazard ratio interacts with the, relatively low, incidence of new health limitations among the age group of interest to generate only a modest number of excess early retirements. Further, our results do not show evidence that the health status of their partner affects the hazard of early retirement for both men and women. Having an employed partner does reduce the hazard of early retirement.     

The price effect of tariff liberalization: Measuring the impact on household welfare

Trade policy literature has for many years emphasized open policies positive impact on economic growth and development. While these results generally hold when measured on averages, empirical evidence suggests that trade liberalization is unlikely to produce beneficial results across all households. This study adds to the literature by providing an analysis of the distributive effects of tariff liberalization in Mexico. The paper examines the effect of tariff liberalization from the perspective of households both as consumers and factor owners allowing for imperfect domestic price transmission. The results indicate the overall positive effect of tariff liberalization masks significant differences in the distribution of gains both across income levels and across geographic regions. Richer households are found to have gained relatively more. Urban areas, as well as Mexican states closest to the United States border, are also found to be larger beneficiaries while southernmost states have been largely bypassed by the effects of tariff liberalization. Those results can be explained not only in relation to the different endowments of the households, but also by the diverse effects on local prices that has resulted from Mexican trade liberalization.     

HUMAN CAPITAL AND THE PROBABILITY OF DIVORCE

Concern about the high poverty rates experienced by children in female‐headed households has led to policies aimed at increasing these households' income. In this paper we present a model that analyses decisions made before and during marriage to invest in the human capital of parents and children. These decisions result from a variety of anticipated post‐divorce monetary transfers between spouses.     

Self‐rated Health Status of Japanese and Europeans in Later Life: Evidence from JSTAR and SHARE

Using panel data from two surveys in Japan and Europe, we examine the comparability of the self‐rated health of the middle‐aged and elderly across Japan and European countries and across the survey periods. We find that a person's own health is evaluated using different standards (thresholds) across the different countries and survey waves. When evaluated using common thresholds, the Japanese elderly are found to be healthier than their counterparts in the European countries. Reporting biases causing discrepancies between the changes in individuals' self‐rated health and their actual health over the survey waves are associated with education and country of residence.     

A theory of rational marriage and divorce

Despite high rates of cohabitation before marriage, and considerable efforts invested in the search for a life partner, a high number of marriages end in divorce. This paper develops a model of household formation and dissolution in which it may be rational for individuals to marry, fully anticipating that they will subsequently divorce. Economies of scale associated with living as a couple rather than in two separate households provide an incentive to marry; problems with free riding in the provision of household collective goods may lead to divorce. Marriages which involve partners who are similar, in tastes or in their productive capacities, and in which private goods are equally shared, are the most likely to be stable. In contrast, marriages which involve very disparate partners, or which share the fruits of market labor very unequally between the partners, are more likely to be shortlived and end in divorce.     

Unionization,international integration,and selection

Abstract We study how unionization affects competitive selection between heterogeneous firms when wage negotiations can occur at the firm or at the profit‐centre level. With productivity specific wages, an increase in union power has: (i) a selection‐softening; (ii) a counter‐competitive; (iii) a wage‐inequality; and (iv) a variety effect. In a two‐country asymmetric setting, stronger unions soften competition for domestic firms and toughen it for exporters. With profit‐centre bargaining, we show how trade liberalization can affect wage inequality among identical workers both across firms (via its effects on competitive selection) and within firms (via wage discrimination across destination markets).     

Household bargaining over fertility: Theory and evidence from Malaysia

We develop and test a model of household bargaining over fertility when transfers between spouses are possible. The model makes precise how the fertility preferences of each spouse translate into fertility outcomes. We show this depends on whether or not spouses can commit to their future actions within marriage. If couples bargain with commitment, fertility outcomes take account of both spouses' fertility preferences and do not depend on the threat point in marital bargaining. If couples bargain without commitment, the influence of each spouse's fertility preference on fertility outcomes depends on the relevant threat point in marital bargaining, and the distribution of bargaining power. We test the models using household data from the Malaysia Family Life Survey. This data set contains information on each spouse's desired fertility level, as well as fertility outcomes. We exploit differences in threat points in marital bargaining across ethnic groups to help identify the underlying bargaining model. The evidence suggests couples bargain without commitment.