Economics at your fingertips  

Control of resources, bargaining power and the demand of food: Evidence from PROGRESA

Denni Tommasi

Journal of Economic Behavior & Organization, 2019, vol. 161, issue C, 265-286

Abstract: I use a structural model of households to recover how much resources each individual controls in the context of the Mexican PROGRESA program. I find that the eligibility to receive the cash transfers induces a redistribution of resources from the father to both the mother and children, although the mother is the one benefiting the most. With these information I compute individual poverty rates and quantify to what extent the program reduces within-household inequality. I also combine these measures to construct a proxy for women’s bargaining power and, using causal identification techniques, I estimate its direct effects on household demand for food. Exploiting random assignment of the cash transfers as an instrumental variable for the treatment of interest, I show that mothers having majority control of household resources relative to fathers increase food consumption as a share of the household budget by 6.5–8.3%. I use these estimates to argue that, by knowing (i) The distribution of pre-program resources inside the household, and (ii) How much influence each decision maker can have on the desired policy outcome, a policymaker can improve the cost-effectiveness of a cash transfer program by targeting the cash to resource shares in addition to gender.

Keywords: Cash transfers; PROGRESA; Structural model; Collective model; Resource shares; Poverty; Causality; LATE; Engel curves; Food (search for similar items in EconPapers)
JEL-codes: D13 D11 D12 C31 I32 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Control of Resources, Bargaining Power and the Demand of Food: Evidence from PROGRESA (2018) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

Journal of Economic Behavior & Organization is currently edited by Houser, D. and Puzzello, D.

More articles in Journal of Economic Behavior & Organization from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

Page updated 2019-12-09
Handle: RePEc:eee:jeborg:v:161:y:2019:i:c:p:265-286