IDEAS home Printed from https://ideas.repec.org/p/ags/aaea03/22118.html
   My bibliography  Save this paper

Impact Of Credit On Labor Allocation And Consumption Patterns In Malawi

Author

Listed:
  • Swaminathan, Hema
  • Findeis, Jill L.

Abstract

Using a bargaining framework, this paper analyzes the impact of access to credit on household labor allocation and on consumption expenditures in rural Malawi. The labor participation decisions of married men and women and female heads are estimated using random-effects probit models, and are corrected for endogeneity of access to credit. Expenditure shares are estimated using ordinary least squares and Tobit models.

Suggested Citation

  • Swaminathan, Hema & Findeis, Jill L., 2003. "Impact Of Credit On Labor Allocation And Consumption Patterns In Malawi," 2003 Annual meeting, July 27-30, Montreal, Canada 22118, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea03:22118
    DOI: 10.22004/ag.econ.22118
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/22118/files/sp03sw01.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.22118?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
    ---><---

    References listed on IDEAS

    as
    1. Cheryl R. Doss, 1996. "Intrahousehold Resource Allocation in an Uncertain Environment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(5), pages 1335-1339.
    2. Khandker, Shahidur R. & Faruqee, Rashid R., 2003. "The impact of farm credit in Pakistan," Agricultural Economics, Blackwell, vol. 28(3), pages 197-213, May.
    3. Quisumbing, Agnes R., 1994. "Intergenerational transfers in Philippine rice villages : Gender differences in traditional inheritance customs," Journal of Development Economics, Elsevier, vol. 43(2), pages 167-195, April.
    4. Hoddinott, John & Haddad, Lawrence, 1995. "Does Female Income Share Influence Household Expenditures? Evidence from Cote d'Ivoire," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 57(1), pages 77-96, February.
    5. William H. Greene, 1998. "Gender Economics Courses in Liberal Arts Colleges: Further Results," The Journal of Economic Education, Taylor & Francis Journals, vol. 29(4), pages 291-300, January.
    6. Pitt, M.M. & Khandker, S.R., 1996. "Household and Intrahousehold Impact of the Grameen Bank and Similar Targeted Credit Programs in Bangladesh," World Bank - Discussion Papers 320, World Bank.
    7. Gershon Feder & Lawrence J. Lau & Justin Y. Lin & Xiaopeng Luo, 1990. "The Relationship between Credit and Productivity in Chinese Agriculture: A Microeconomic Model of Disequilibrium," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(5), pages 1151-1157.
    8. Reardon, Thomas, 1997. "Using evidence of household income diversification to inform study of the rural nonfarm labor market in Africa," World Development, Elsevier, vol. 25(5), pages 735-747, May.
    9. Chiappori, Pierre-Andre, 1988. "Rational Household Labor Supply," Econometrica, Econometric Society, vol. 56(1), pages 63-90, January.
    10. James J. Heckman & Jeffrey A. Smith, 1995. "Assessing the Case for Social Experiments," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 85-110, Spring.
    11. Rick Audas & Tim Barmby & John Treble, 2004. "Luck, Effort, and Reward in an Organizational Hierarchy," Journal of Labor Economics, University of Chicago Press, vol. 22(2), pages 379-396, April.
    12. Quisumbing, Agnes R. & de la Briere, Benedicte, 2000. "Women's assets and intrahousehold allocation in rural Bangladesh," FCND briefs 86, International Food Policy Research Institute (IFPRI).
    13. Smith, Richard J & Blundell, Richard W, 1986. "An Exogeneity Test for a Simultaneous Equation Tobit Model with an Application to Labor Supply," Econometrica, Econometric Society, vol. 54(3), pages 679-685, May.
    14. Eswaran, Mukesh & Kotwal, Ashok, 1990. "Implications of Credit Constraints for Risk Behaviour in Less Developed Economies," Oxford Economic Papers, Oxford University Press, vol. 42(2), pages 473-482, April.
    15. Chiappori, Pierre-Andre, 1992. "Collective Labor Supply and Welfare," Journal of Political Economy, University of Chicago Press, vol. 100(3), pages 437-467, June.
    16. Ilahi, Nadeem, 2001. "Gender and the allocation of adult time : evidence from the Peru LSMS panel data," Policy Research Working Paper Series 2744, The World Bank.
    17. Skoufias, Emmanuel, 1993. "Labor market opportunities and intrafamily time allocation in rural households in South Asia," Journal of Development Economics, Elsevier, vol. 40(2), pages 277-310, April.
    18. Kabeer, Naila, 2001. "Conflicts Over Credit: Re-Evaluating the Empowerment Potential of Loans to Women in Rural Bangladesh," World Development, Elsevier, vol. 29(1), pages 63-84, January.
    19. Amemiya, Takeshi, 1974. "Multivariate Regression and Simultaneous Equation Models when the Dependent Variables Are Truncated Normal," Econometrica, Econometric Society, vol. 42(6), pages 999-1012, November.
    20. Feder, Gershon & Lau, Lawrence J. & Lin, Justin Y. & Xiaopeng Luo, 1991. "Credit's effect on productivity in Chinese agriculture : a microeconomic model of disequilibrium," Policy Research Working Paper Series 571, The World Bank.
    21. Manski, Charles F & Lerman, Steven R, 1977. "The Estimation of Choice Probabilities from Choice Based Samples," Econometrica, Econometric Society, vol. 45(8), pages 1977-1988, November.
    22. Handa, Sudhanshu, 1996. "Expenditure behavior and children's welfare: An analysis of female headed households in Jamaica," Journal of Development Economics, Elsevier, vol. 50(1), pages 165-187, June.
    23. Diagne, Aliou & Zeller, Manfred, 2001. "Access to credit and its impact on welfare in Malawi:," Research reports 116, International Food Policy Research Institute (IFPRI).
    24. T. Paul Schultz, 1990. "Testing the Neoclassical Model of Family Labor Supply and Fertility," Journal of Human Resources, University of Wisconsin Press, vol. 25(4), pages 599-634.
    25. Strauss, John & Beegle, Kathleen, 1996. "Intrahousehold Allocations: A Review of Theories, Empirical Evidence and Policy Issues," Food Security International Development Working Papers 54688, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    26. Rivers, Douglas & Vuong, Quang H., 1988. "Limited information estimators and exogeneity tests for simultaneous probit models," Journal of Econometrics, Elsevier, vol. 39(3), pages 347-366, November.
    27. Shelly Lundberg & Robert A. Pollak, 1996. "Bargaining and Distribution in Marriage," Journal of Economic Perspectives, American Economic Association, vol. 10(4), pages 139-158, Fall.
    28. Jacob N. Arendt, 2002. "Endogeneity and Heterogeneity in LDV Panel Data Models," 10th International Conference on Panel Data, Berlin, July 5-6, 2002 D6-1, International Conferences on Panel Data.
    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. Findeis, Jill L. & Swaminathan, Hema & Jayaraman, Anuja, 2003. "Agricultural Household-Firm Units: Adjustments to Change," Policy Reform and Adjustment Workshop, October 23-25, 2003, Imperial College London, Wye Campus 15738, International Agricultural Policy Reform and Adjustment Project (IAPRAP).

    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. Swaminathan, Hema & Salcedo Du Bois, Rodrigo & Findeis, Jill L., 2010. "Impact of Access to Credit on Labor Allocation Patterns in Malawi," World Development, Elsevier, vol. 38(4), pages 555-566, April.
    2. Agnes R. Quisumbing & John A. Maluccio, 2003. "Resources at Marriage and Intrahousehold Allocation: Evidence from Bangladesh, Ethiopia, Indonesia, and South Africa," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 65(3), pages 283-327, July.
    3. Diagne, Aliou, 1998. "Impact of access to credit on income and food security in Malawi," FCND discussion papers 46, International Food Policy Research Institute (IFPRI).
    4. Xu, Zeyu, 2007. "A survey on intra-household models and evidence," MPRA Paper 3763, University Library of Munich, Germany.
    5. Haddad, Lawrence, 1999. "The income earned by women: impacts on welfare outcomes," Agricultural Economics, Blackwell, vol. 20(2), pages 135-141, March.
    6. Zeller, Manfred & Ahmed, Akhter U. & Babu, Suresh Chandra & Broca, Sumiter S. & Diagne, Aliou & Sharma, Manohar, 1996. "Rural finance policies for food security of the poor," FCND discussion papers 11, International Food Policy Research Institute (IFPRI).
    7. James Andreoni & Eleanor Brown & Isaac Rischall, 2003. "Charitable Giving by Married Couples Who Decides and Why Does it Matter?," Journal of Human Resources, University of Wisconsin Press, vol. 38(1).
    8. Casco José L., 2022. "Intra-household Resource Shares under Poverty Transfers: Evidence from Ecuador," Working Papers 2022-03, Banco de México.
    9. Alem, Yonas & Hassen, Sied & Köhlin, Gunnar, 2018. "Decision-making within the Household: The Role of Autonomy and Differences in Preferences," Working Papers in Economics 724, University of Gothenburg, Department of Economics.
    10. Diagne, Aliou & Zeller, Manfred, 2001. "Access to credit and its impact on welfare in Malawi:," Research reports 116, International Food Policy Research Institute (IFPRI).
    11. Denni Tommasi, 2015. "How Cash Transfers Improve Child Development," Working Papers ECARES ECARES 2015-19, ULB -- Universite Libre de Bruxelles.
    12. José L. Casco, 2024. "Intra-household resource shares under poverty transfers: evidence from Ecuador," Review of Economics of the Household, Springer, vol. 22(3), pages 1243-1274, September.
    13. LaFave, Daniel & Thomas, Duncan, 2017. "Extended families and child well-being," Journal of Development Economics, Elsevier, vol. 126(C), pages 52-65.
    14. Lee, Jungmin, 2004. "Observable and Unobservable Household Sharing Rules: Evidence from Young Couples' Pocket Money," IZA Discussion Papers 1250, Institute of Labor Economics (IZA).
    15. Dauphin, Anyck & El Lahga, Abdel-Rahmen & Fortin, Bernard & Lacroix, Guy, 2006. "Choix de consommation des ménages en présence de plusieurs décideurs," L'Actualité Economique, Société Canadienne de Science Economique, vol. 82(1), pages 87-118, mars-juin.
    16. Diana Mok, 2007. "Do Two-earner Households Base Their Choice of Residential Location on Both Incomes?," Urban Studies, Urban Studies Journal Limited, vol. 44(4), pages 723-750, April.
    17. Sandrine A. Koissy-Kpein, 2015. "Gender-based violence and gender bias in schooling decision: Evidence from sub-Saharan Africa," WIDER Working Paper Series wp-2015-107, World Institute for Development Economic Research (UNU-WIDER).
    18. Robert A. Pollak, 2005. "Bargaining Power in Marriage: Earnings, Wage Rates and Household Production," NBER Working Papers 11239, National Bureau of Economic Research, Inc.
    19. Sandrine A. Koissy-Kpein, 2015. "Gender-based violence and gender bias in schooling decision: Evidence from sub-Saharan Africa," WIDER Working Paper Series 107, World Institute for Development Economic Research (UNU-WIDER).
    20. Olivier Bargain & Miriam Beblo & Denis Beninger & Richard Blundell & Raquel Carrasco & Maria-Concetta Chiuri & François Laisney & Valérie Lechene & Nicolas Moreau & Michal Myck & Javier Ruiz-Castillo , 2006. "Does the Representation of Household Behavior Matter for Welfare Analysis of Tax-benefit Policies? An Introduction," Review of Economics of the Household, Springer, vol. 4(2), pages 99-111, June.

    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:ags:aaea03:22118. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    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.