Gender-Bias in India: The Importance of Household Fixed-Effects

Ramesh Subramaniam

Oxford Economic Papers, 1996, vol. 48, issue 2, 280-99

Abstract: This paper presents an analysis of gender patterns in intrahousehold allocation of resources based on household-level consumption data. Invoking the assumption that households seek to equalize the marginal utility of wealth when they allocate resources over the life-cycle, the paper provides a rationale for parental behavior pertaining to the intertemporal allocation of goods among children. Estimation results based on panel data from India show that controlling for the unobserved marginal utility (household-fixed) effect is crucial. Once allowance is made for fixed effects, the results indicate that there is no longer any gender-differential in the allocation of resources. Copyright 1996 by Royal Economic Society.

Date: 1996
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