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Article
Publication date: 28 December 2020

Ernesto Aguayo-Téllez, Adelaido García-Andrés and Jose N. Martinez

This paper aims to analyse the differential impact of foreign and domestic remittances on household expenditure shares.

Abstract

Purpose

This paper aims to analyse the differential impact of foreign and domestic remittances on household expenditure shares.

Design/methodology/approach

This study uses micro-data from a very large and detailed income-expenditure survey in Mexico and runs consumption-share Engel equations to estimate income (expenditure) elasticities for different consumption goods groups. Trying to account for the standard problems of endogeneity, this paper considers only nuclear households with migrant fathers and compare households that receive remittances from abroad, from within Mexico and those not receiving remittances.

Findings

This study finds that international remittances have a larger impact on the expenditure shares of women’s clothes, insurances and durable goods, while domestic remittances have a larger impact on the share of income dedicated to food, health and education.

Originality/value

Based on the results, differences in consumption shares between families receiving foreign and domestic remittances might depend not only on the relative size of the income transfer but also on the nature of the transfer and the sender’s capacity to monitor in person the use of those remittances. The results indicate that households that receive remittances from abroad present higher shares of consumption of some goods the literature commonly associates with the mothers’ preferences.

Details

International Journal of Development Issues, vol. 20 no. 2
Type: Research Article
ISSN: 1446-8956

Keywords

Book part
Publication date: 23 May 2007

Olivier Bargain and Nicolas Moreau

The literature on household behavior contains hardly any empirical research on the within-household distributional effects of tax-benefit policies. We simulate this effect…

Abstract

The literature on household behavior contains hardly any empirical research on the within-household distributional effects of tax-benefit policies. We simulate this effect in the framework of a collective model of labor supply when shifting from a joint to an individual taxation system in France. We show that the net-of-tax relative earning potential of the wife is a significant determinant of intrahousehold negotiation but with very low elasticity. Consequently, the labor supply responses to the reform are essentially driven by the traditional substitution and income effects as in a unitary model. For some households only, the reform alters the intrahousehold distribution in a way that tends to change normative conclusions. A sensitivity analysis shows that the distributional effects captured by the collective model would be significant only for reforms both radical and of extended scope.

Details

Inequality and Poverty
Type: Book
ISBN: 978-0-7623-1374-7

Article
Publication date: 29 July 2020

Piotr Bialowolski, Andrzej Cwynar and Dorota Weziak-Bialowolska

The article aims to study the relationship between the assignments of financial management responsibilities and the level of financial literacy within married and…

1171

Abstract

Purpose

The article aims to study the relationship between the assignments of financial management responsibilities and the level of financial literacy within married and cohabitating couples.

Design/methodology/approach

The link between household financial management and the financial literacy of union partners was examined using dyadic survey data. In the dyadic multilevel regression analysis, the financial management process was scrutinized, and two distinct measures of financial literacy (tested and self-assessed) were used as the outcomes in the analysis.

Findings

The extent to which married and cohabitating individuals engage in household financial management was found to positively correlate with their financial literacy. Self-reports about the division of financial management responsibilities were found to be biased with individuals typically overestimating their share in household financial management. Consequently, the status of household financial manager was not as crucial for financial literacy as was the self-perception of engagement in household financial management. Despite the benefits of intrahousehold labor specialization, delegation of sole responsibility for household financial matters may place the person who waives the responsibility at a serious risk of self-exclusion from lifelong financial learning.

Originality/value

The article uses dyadic data (from married and cohabiting couples), which ensures more rigorous and accurate evidence for the link between the household financial management and financial literacy. A novel approach to the analytical treatment of partners' contradictory reports on the role of couple's financial manager is also proposed. The breadth of household financial management is captured by analyzing three stages of the process: proposing, decision-making and implementation of financial solutions or actions.

Details

International Journal of Bank Marketing, vol. 38 no. 6
Type: Research Article
ISSN: 0265-2323

Keywords

Book part
Publication date: 13 December 2013

Eugene Choo and Shannon Seitz

We develop and estimate an empirical collective model with endogenous marriage formation, participation, and family labor supply. Intra-household transfers arise…

Abstract

We develop and estimate an empirical collective model with endogenous marriage formation, participation, and family labor supply. Intra-household transfers arise endogenously as the transfers that clear the marriage market. The intra-household allocation can be recovered from observations on marriage decisions. Introducing the marriage market in the collective model allows us to independently estimate transfers from labor supplies and from marriage decisions. We estimate a semiparametric version of our model using 1980, 1990, and 2000 US Census data. Estimates of the model using marriage data are much more consistent with the theoretical predictions than estimates derived from labor supply.

Details

Structural Econometric Models
Type: Book
ISBN: 978-1-78350-052-9

Keywords

Book part
Publication date: 19 May 2010

Levison S. Chiwaula

The positive relationship between household poverty and child labor decisions need not to be generalised across different types of works and geographical regions. This…

Abstract

The positive relationship between household poverty and child labor decisions need not to be generalised across different types of works and geographical regions. This chapter studies this relationship using the 2004 Malawi Integrated Household Survey data. The study attempts to identify the influence of exogenous change in household consumption on child labor decisions by using consumer durable goods as an instrument. These findings show that child labor was most prevalent and intensive in domestic work, but significant negative relationships between household consumption and child labor supply are only found in unpaid market work. These findings support both poverty reduction and awareness campaigns as child labor eradication strategies. Promotion of non-labor intensive income sources also seems to be an attractive policy option.

Details

Child Labor and the Transition between School and Work
Type: Book
ISBN: 978-0-85724-001-9

Book part
Publication date: 14 August 2015

Ebrahim Azimi

Although preference for sons has been documented among parents in developing countries, it is an open question whether and to what extent intra-household resource…

Abstract

Although preference for sons has been documented among parents in developing countries, it is an open question whether and to what extent intra-household resource allocation is influenced by family sex composition. This study investigates the effects of sex composition on intra-household resource allocation based on the collective household model of Dunbar, Lewbel, and Pendakur (2013). I extend their model to estimate the influences on a household member’s resource share by observing how budget shares of a private assignable good vary not only with total expenditure and family size, but also with family sex composition. Using data from the 2005 Iranian Household Income and Expenditure Survey, I find that family composition significantly affects intra-household resource allocation in Iranian rural areas. Specifically, rural parents assign 1.6–1.9 percentage points more resources toward their sons. These resources are essentially coming at the expense of mothers. In all-boy families, mothers get 2.8–3.6 percentage points fewer resources than they do in all-girl families. These effects are more pronounced among farmer families than nonfarmer families. However, I find no significant role for gender composition in intra-household resource allocation in urban areas.

Details

Gender in the Labor Market
Type: Book
ISBN: 978-1-78560-141-5

Keywords

Book part
Publication date: 29 May 2009

Laurens Cherchye, Ian Crawford, Bram De Rock and Frederic Vermeulen

The standard approach in measuring demand responses and consumer preferences assumes particular parametric models for the consumer preferences and demand functions, and…

Abstract

The standard approach in measuring demand responses and consumer preferences assumes particular parametric models for the consumer preferences and demand functions, and subsequently fits these models to observed data. In principle, the estimated demand models can then be used (i) to test consistency of the data with the theory of consumer behavior, (ii) to infer consumer preferences, and (iii) to predict the consumer's response to, say, new prices following a policy reform. This chapter focuses on an alternative, nonparametric approach. More specifically, we review methods that tackle the earlier issues by merely starting from a minimal set of so-called revealed preference axioms. In contrast to the standard approach, this revealed preference approach avoids the use of parametric models for preferences or demand. The structure of the chapter is as follows. First, we introduce the basic concepts of the revealed preference approach to model consumer demand. Next, we consider issues like goodness-of-fit, power, and measurement error, which are important in the context of empirical applications. Finally, we review a number of interesting extensions of the revealed preference approach, which deal with characteristics models, habit-formation, and the collective model.

Details

Quantifying Consumer Preferences
Type: Book
ISBN: 978-1-84855-313-2

Keywords

Book part
Publication date: 10 November 2014

Alan L. Gustman and Thomas L. Steinmeier

This paper advances the specification and estimation of econometric models of retirement and saving in two earner families. The complications introduced by the interaction…

Abstract

This paper advances the specification and estimation of econometric models of retirement and saving in two earner families. The complications introduced by the interaction of retirement decisions by husbands and wives have led researchers to adopt a number of simplifications. Our analysis relaxes these restrictions. The model includes three labor market states, full-time work, partial retirement, and full retirement; reverse flows from states of lesser to greater work; an extended choice set created when spouses make independent retirement decisions; heterogeneity in time preference; varying taste parameters for full-time and part-time work; and the possibility of changes in preferences after retirement.

Details

Factors Affecting Worker Well-being: The Impact of Change in the Labor Market
Type: Book
ISBN: 978-1-78441-150-3

Keywords

Abstract

Details

Handbook of Microsimulation Modelling
Type: Book
ISBN: 978-1-78350-570-8

Book part
Publication date: 26 August 2010

Martina Menon and Federico Perali

The chapter estimates the cost of maintaining a child, at different ages, the cost of being single, and the cost of additional adults present in a family, with the aim of…

Abstract

The chapter estimates the cost of maintaining a child, at different ages, the cost of being single, and the cost of additional adults present in a family, with the aim of making comparable the income levels of different households. The study investigates the issue of econometric identification of equivalence scales within a demand system modified to include demographic characteristics consistently with economic theory. It shows that a robust estimation of equivalence scales must take into formal consideration the problem of econometric identification. The estimate also puts forward all-encompassing demographic specifications to identify costs due to differences in needs, household lifestyles, and economies of scale.

Details

Studies in Applied Welfare Analysis: Papers from the Third ECINEQ Meeting
Type: Book
ISBN: 978-0-85724-146-7

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