Does Female Empowerment Promote Economic Development? / Matthias Doepke, Michèle Tertilt.

Format:

Book

Author/Creator:

Doepke, Matthias.

Contributor:

National Bureau of Economic Research.

Tertilt, Michèle.

Series:

Working Paper Series (National Bureau of Economic Research) no. w19888.

NBER working paper series no. w19888

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2014.

Summary:

Empirical evidence suggests that money in the hands of mothers (as opposed to fathers) increases expenditures on children. Does this imply that targeting transfers to women promotes economic development? Not necessarily. We consider a noncooperative model of the household where a gender wage gap leads to endogenous household specialization. As a result, women indeed spend more on children and invest more in human capital. Yet, depending on the nature of the production function, targeting transfers to womenmay be beneficial or harmful to growth. Transfers to women are more likely to be beneficial when human capital, rather than physical capital or land, is the most important factor of production. We provide empirical evidence supportive of our mechanism: In Mexican PROGRESA data, transfers to women lead to an increase in spending on children, but a decline in the savings rate.

Notes:

Print version record

February 2014.