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Bargaining power and efficiency-rural households in Ethiopia

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  • Holger Seebens

    (Center for Development Research, University of Bonn, Bonn, Germany)

  • Johannes Sauer

    (Royal Veterinary and Agricultural University, Copenhagen, Denmark)

Abstract

It appears to be clear from literature that bargaining power associated with greater control over household resources affects the share of an individual's consumption, that is, higher bargaining power leads to higher levels of consumption. However, it has remained unexplored, if and in which way bargaining power has an impact on household production. By applying different stochastic efficiency models, we try to fill this gap by investigating the role of the distribution of productive resources among 558 couples of rural Ethiopian households in determining the outcome of household production. The results clearly confirm that the more equal the allocation of resources, the higher the household's productivity which could be predominantly due to the incentives to participate efficiently in the production process. Copyright © 2007 John Wiley & Sons, Ltd.

Suggested Citation

  • Holger Seebens & Johannes Sauer, 2007. "Bargaining power and efficiency-rural households in Ethiopia," Journal of International Development, John Wiley & Sons, Ltd., vol. 19(7), pages 895-918.
    • Handle: RePEc:wly:jintdv:v:19:y:2007:i:7:p:895-918
    DOI: 10.1002/jid.1347
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    References listed on IDEAS

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    4. Dorward, Andrew, 2012. "Conceptualising the Effects of Seasonal Financial Market Failures and Credit Rationing in Applied Rural Household Models," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 51(2), pages 1-21, May.
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    6. Yochanan Shachmurove & Uriel Spiegel, 2013. "Are All Technological Improvements Beneficial? Absolutely Not," PIER Working Paper Archive 13-027, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
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