GENDER-BIAS IN INDIA: THE IMPORTANCE OF HOUSEHOLD FIXED-EFFECTS

This paper presents an analysis of gender patterns in intra-householdallocation of resources based on household-level consumptiondata. Invoking the assumption that households seek to equalizethe marginal utility of wealth when they allocate resourcesover the life-cycle, the paper provides a rationale for parentalbehaviour pertaining to the intertemporal allocation of goodsamong children. Estimation results based on panel data fromIndia show that controlling for the unobserved marginal utility(household-fixed) effect is crucial. Once allowance is madefor fixed effects, the results indicate that there is no longerany gender-differential in the allocation of resources.