Is Knowledge Shared within Households? Theory and Evidence for Bangladesh

Kaushik Basu, Ambar Narayan and Martin Ravallion

No 82, Working Papers from Institute for Social and Economic Change, Bangalore

Abstract: A member of a collective-action household may or may not share knowledge with others in that household. Shared income gains from shared knowledge may well be offset by a shift in the balance of power within the family. Using household survey data for Bangladesh we find strong external effects of education on individual earnings. Holding a range of personal attributes constant, an illiterate adult earns significantly more in the non-farm economy when living in a family with at least one literate member. These effects are strongest, and most robust, for women. Omitted-variable bias cannot be ruled out, but would also be consistent with an intra-household externality of literacy.

Keywords: Household behaviour; Literacy; Externalities; Income; Bangladesh (search for similar items in EconPapers)
JEL-codes: D10 J24 J31 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2001
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Citations: View citations in EconPapers (6)

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