IDEAS home Printed from https://ideas.repec.org/a/eee/wdevel/v66y2015icp557-571.html
   My bibliography  Save this article

Intra-Household Resource Allocation under Negative Income Shock: A Natural Experiment

Author

Listed:
  • Mottaleb, Khondoker A.
  • Mohanty, Samarendu
  • Mishra, Ashok K.

Abstract

Using households from coastal districts in Bangladesh, as a case, and applying the difference-in-difference estimation method, this paper demonstrates a gender-differentiated outcome of negative income shocks for education expenditures of households. The cyclonic disaster that reduced crop income substantially increased the demand for labor as well as wages for rebuilding damaged farms. This in turn increased the opportunity costs of boys’ schooling, as reconstruction is a male-friendly sector. Consequently, parents withdrew their sons from school and engaged them in their households’ repair work and/or in wage-earning activities. However, girls’ schooling expenditure was unchanged in the affected farm and non-farm households.

Suggested Citation

  • Mottaleb, Khondoker A. & Mohanty, Samarendu & Mishra, Ashok K., 2015. "Intra-Household Resource Allocation under Negative Income Shock: A Natural Experiment," World Development, Elsevier, vol. 66(C), pages 557-571.
    • Handle: RePEc:eee:wdevel:v:66:y:2015:i:c:p:557-571
    DOI: 10.1016/j.worlddev.2014.09.012
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305750X14002770
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.worlddev.2014.09.012?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Shahidur R. Khandker, 2007. "Coping with flood: role of institutions in Bangladesh," Agricultural Economics, International Association of Agricultural Economists, vol. 36(2), pages 169-180, March.
    2. Sarker, Md. Abdur Rashid & Alam, Khorshed & Gow, Jeff, 2012. "Exploring the relationship between climate change and rice yield in Bangladesh: An analysis of time series data," Agricultural Systems, Elsevier, vol. 112(C), pages 11-16.
    3. Robert Jensen, 2000. "Agricultural Volatility and Investments in Children," American Economic Review, American Economic Association, vol. 90(2), pages 399-404, May.
    4. Cameron, Lisa A & Worswick, Christopher, 2001. "Education Expenditure Responses to Crop Loss in Indonesia: A Gender Bias," Economic Development and Cultural Change, University of Chicago Press, vol. 49(2), pages 351-363, January.
    5. Quirin Schiermeier, 2014. "Floods: Holding back the tide," Nature, Nature, vol. 508(7495), pages 164-166, April.
    6. Tansel, Aysit, 2002. "Determinants of school attainment of boys and girls in Turkey: individual, household and community factors," Economics of Education Review, Elsevier, vol. 21(5), pages 455-470, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tanvir Pavel & Syed Hasan & Nafisa Halim & Pallab Mozumder, 2018. "Natural Hazards and Internal Migration: The Role of Transient versus Permanent Shocks," Working Papers 1806, Florida International University, Department of Economics.
    2. Dang, Hai-Anh H. & Hallegatte, Stephane & Trinh, Trong-Anh, 2023. "Does global warming worsen poverty and inequality? An updated review," LSE Research Online Documents on Economics 120701, London School of Economics and Political Science, LSE Library.
    3. Khan, Farid & Bedi, Arjun S. & Sparrow, Robert, 2015. "Sickness and Death: Economic Consequences and Coping Strategies of the Urban Poor in Bangladesh," World Development, Elsevier, vol. 72(C), pages 255-266.
    4. Francisco M. P. Mugizi, 2022. "Stronger together? Shocks, educational investment, and self-help groups in Tanzania," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 24(2), pages 511-548, December.
    5. Chinh T. Mai & Akira Hibiki, 2023. "How Does Flood Affect Children Differently? The Impact of Flood on Children’s Education, Labor, Food Consumption, and Cognitive Development," CIRJE F-Series CIRJE-F-1211, CIRJE, Faculty of Economics, University of Tokyo.
    6. Zenou, Yves & Amarasinghe, Ashani & Raschky, Paul & Zhou, Junjie, 2020. "Conflicts in Spatial Networks," CEPR Discussion Papers 14300, C.E.P.R. Discussion Papers.
    7. Marion Dovis & Patricia Augier & Clémentine Sadania, 2021. "Labor Market Shocks and Youths' Time Allocation in Egypt: Where Does Women's Empowerment Come In?," Post-Print hal-02364648, HAL.
    8. Asfaw, Solomon & Cattaneo, Andrea & Pallante, Giacomo & Palma, Alessandro, 2017. "Improving the efficiency targeting of Malawi's farm input subsidy programme: Big pain, small gain?," Food Policy, Elsevier, vol. 73(C), pages 104-118.
    9. Mottaleb, K. & Erenstein, O., 2018. "Gender Differentiated Impacts of Commodity Price Shocks on Households’ Consumption Behavior: A Natural Experiment," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 275915, International Association of Agricultural Economists.
    10. Mottaleb, Khondoker & Hodson, David, 2021. "Assessing Wheat Blast Induced Economic Loss in Bangladesh: A Natural Experiment," 2021 Conference, August 17-31, 2021, Virtual 315870, International Association of Agricultural Economists.
    11. Marion Dovis & Patricia Augier & Clémentine Sadania, 2021. "Labor Market Shocks and Youths’ Time Allocation in Egypt: Where Does Women’s Empowerment Come In?," Economic Development and Cultural Change, University of Chicago Press, vol. 69(4), pages 1501-1540.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mottaleb, Khondoker Abdul & Mohanty, Samarendu & Hoang, Hoa Thi Khanh & Rejesus, Roderick M., 2013. "The effects of natural disasters on farm household income and expenditures: A study on rice farmers in Bangladesh," Agricultural Systems, Elsevier, vol. 121(C), pages 43-52.
    2. Eskander, Shaikh M.S.U. & Fankhauser, Samuel & Jha, Shikha, 2016. "Do Natural Disasters Change Savings and Employment Choices? Evidence from Bangladesh and Pakistan," ADB Economics Working Paper Series 505, Asian Development Bank.
    3. Noy, Ilan & Karim, Azreen, 2013. "Poverty, inequality and natural disasters – A survey," Working Paper Series 18793, Victoria University of Wellington, School of Economics and Finance.
    4. Kammas, Pantelis & Sakalis, Argyris & Sarantides, Vassilis, 2021. "Pudding, plague and education: trade and human capital formation in an agrarian economy," LSE Research Online Documents on Economics 112206, London School of Economics and Political Science, LSE Library.
    5. Adan, Silverio-Murillo, 2016. "Natural Disasters and the Family in Areas with High Levels of Insurance," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235353, Agricultural and Applied Economics Association.
    6. Nihal Ahmed & Franklin Ore Areche & Guillermo Gomer Cotrina Cabello & Pedro David Córdova Trujillo & Adnan Ahmed Sheikh & Mohamad G. Abiad, 2022. "Intensifying Effects of Climate Change in Food Loss: A Threat to Food Security in Turkey," Sustainability, MDPI, vol. 15(1), pages 1-12, December.
    7. Pullabhotla, Hemant K., 2017. "Unintended Consequences of Alcohol Prohibition Policies on Human Capital Investments in Children: Evidence from India," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258291, Agricultural and Applied Economics Association.
    8. Aparajita Dasgupta & Anahita Karandikar, 2021. "Gender-Gap in Learning Outcomes under Rainfall Shocks: The Role of Gender Norms," Working Papers 70, Ashoka University, Department of Economics.
    9. Mohammad Saiful Islam & Kazunobu Okubo & Abu Hayat Md. Saiful Islam & Masayuki Sato, 2022. "Investigating the effect of climate change on food loss and food security in Bangladesh," SN Business & Economics, Springer, vol. 2(1), pages 1-24, January.
    10. Azreen Karim & Ilan Noy, 2016. "Poverty and Natural Disasters: A Meta-Regression Analysis," Review of Economics and Institutions, Università di Perugia, vol. 7(2).
    11. Takasaki, Yoshito, 2017. "Do Natural Disasters Decrease the Gender Gap in Schooling?," World Development, Elsevier, vol. 94(C), pages 75-89.
    12. Salvucci, Vincenzo & Santos, Ricardo, 2020. "Vulnerability to Natural Shocks: Assessing the Short-Term Impact on Consumption and Poverty of the 2015 Flood in Mozambique," Ecological Economics, Elsevier, vol. 176(C).
    13. Mottaleb, Khondoker Abdul & Gumma, Murali K. & Mishra, Ashok K. & Mohanty, Samarendu, 2015. "Quantifying production losses due to drought and submergence of rainfed rice at the household level using remotely sensed MODIS data," Agricultural Systems, Elsevier, vol. 137(C), pages 227-235.
    14. Mohammad Saiful Islam & Abu Hayat Md. Saiful Islam & Masayuki Sato, 2023. "Nexus between climatic extremes and household expenditures in rural Bangladesh: a nationally representative panel data analysis," Asia-Pacific Journal of Regional Science, Springer, vol. 7(2), pages 355-379, June.
    15. Karim, Azreen & Noy, Ilan, 2014. "Poverty and natural disasters: A meta-analysis," Working Paper Series 18823, Victoria University of Wellington, School of Economics and Finance.
    16. Pullabhotla, H., 2018. "Unintended Consequences of Alcohol Prohibition Policies on Education: Evidence From India," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 275972, International Association of Agricultural Economists.
    17. Azreen Karim & Ilan Noy, 2016. "Poverty And Natural Disasters — A Qualitative Survey Of The Empirical Literature," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(01), pages 1-36, March.
    18. Harold Alderman & John Hoddinott & Bill Kinsey, 2006. "Long term consequences of early childhood malnutrition," Oxford Economic Papers, Oxford University Press, vol. 58(3), pages 450-474, July.
    19. Martin Henseler & Ingmar Schumacher, 2019. "The impact of weather on economic growth and its production factors," Climatic Change, Springer, vol. 154(3), pages 417-433, June.
    20. Denis Cogneau & Rémi Jedwab, 2012. "Commodity Price Shocks and Child Outcomes: The 1990 Cocoa Crisis in Côte d'Ivoire," Economic Development and Cultural Change, University of Chicago Press, vol. 60(3), pages 507-534.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:wdevel:v:66:y:2015:i:c:p:557-571. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/worlddev .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.