A Decomposition of Poverty Trends across Regions: The Role of Variation in the Income and Inequality Elasticities of Poverty

globalization, poverty, income growth, inequality

Intra-household efficiency; An experimental study from Ethiopia

Using data from experimental games and household survey from 1, 200 married couples in three sites in Ethipoia, this paer uses different versions of a voluntary contribution mechanism to test for household efficiency. The experimental and econometric analyses provide many interesting results that have far-reaching implications for intra-houisehold models. Efficiency in contribution behaviour is decisively rejected in all treatments casting doubt on 'unitary' and 'collective' household models that assume Pareto optimality - significant amounts of potential surplus are not realised. Contribution rates by males and females are not significantly different from each other undermining models that argue females tend to contribute more to the family (for example, Sen 1990). Information on itital endowments of spouses improves contribution rates (efficiency) in some treatments while not having effect in others suggesting that the effect of information is context dependent. Actual and expected contribution rates of spouses are systematically different; husbands' expect their wives will contribute more than their actual contributions and wives expect their husbands will contribute lower than actual contribution. These systematic errors in expectations imply that the attainment if equilibrium in a game theoretic framework is unlikely. Statistical tests indicate that instead of efficiency considerations other norms are likely important. For example, in many of the treatments spouses contributed around half of their endowments implying either a norm like fairness or focal points influence decisions. Overall, most of the empirical resulst cast doubt on cooperative models and provide some support for behaviour guided either by farirness or other norms.household efficiency, intra-household models, experiemental games, ethiopia

Multilingualism and public goods provision: An experiment in two languages in Uganda

Multilingualism is the global norm, but the implications of this for cooperation and public goods provision have not been studied before. We test whether the language in which a public goods game is played affects subjects' contributions amongst a bilingual population in eastern Uganda, finding that subjects contribute 30% more on average in the national language. This treatment effect is solely driven by those most associated with the local Gisu identity, for whom contributions are 43–74% higher in the national language. This difference fits with Gisu culture's high value on self-reliance and low value on reciprocity and cooperation, due to a violent history of intense competition over land. Language is thus shown to affect cooperation, but only for individuals who both have different latent norms and for whom language activates these norms. NB: The experimental script, data and code are available at https://paulclist.github.i

What’s love got to do with it ? An experimental test of household models in East Uganda

We test core theories of the household using variants of a public good game and experimental data from 240 couples in rural Uganda. Spouses do not maximise surplus from cooperation and realise a greater surplus when women are in charge. This violates assumptions of unitary and cooperative models. When women control the common account, they receive less than when men control it; this contradicts standard bargaining models. Women contribute less than men and are rewarded more generously by men than vice versa. This casts doubt on postulates in Sen (1990). While the absence of altruism is rejected, we find evidence for opportunism. The results are put in a socioeconomic context using quantitative and qualitative survey data. Assortative matching and correlates of bargaining power influence behaviour within the experiments. Our findings suggest that a .one-size fits all. model of the household is unlikely to be satisfactory.

Job recruitment networks and migration to cities in India

Economists have focused on job search and supply-side explanations for network effects in labour transactions. This paper develops and tests an alternative explanation for the high prevalence of network-based labour market entry in developing countries. In our theoretical framework, employers use employee networks as screening and incentive mechanisms to improve the quality of recruitment. Our framework suggests a negative relationship between network use and the skill intensity of jobs, a positive association between economic activity and network use and a negative relationship between network use and pro-labour legislation. Furthermore, social identity effects are expected to intensify compared to information-sharing and other network mechanisms. Using data from an all-India Employment Survey we implement a novel empirical strategy to test these relationships and find support for our demand-side explanation.

Caste dominance and economic performance in rural India

Using a unique household panel data set for rural India covering the years 1993/1994 and 2004/2005 we test a key theoretical assertion of caste and its effects, namely that marginalised social groups fare worse in terms of income levels when resident in villages dominated by upper castes. We also test whether marginalised groups perform better or worse in villages where their own group is dominant. We proceed to explore the implications for income growth and for poverty incidence and persistence. After controlling for potential locational confounds, upper caste dominance confers a positive externality on other social groups. This externality is discounted by group specific `oppression' effects which range in size from zero to 16 percent of mean income and peak for Scheduled Caste (SC) and Other Backward Classes (OBC) households. Further, we identify positive and large own dominance (village `enclave') effects that account for as much as a quarter of mean income for SC households in the post reform years. These results are robust to how dominance is measured. We also identify pathways through which identity-based welfare disparities may be reduced; while such disparities are widening, their causes show signs of both persistence and change. Whereas education matters, land redistribution provides the key to eliminating the adverse effects of upper caste dominance. Even after factor endowment and other controls have been added, and with the notable exception of those in SC dominated villages, SCs not only perform worse than other groups but have fallen further behind during the post reform years.

The lion’s share. An experimental analysis of polygamy in Northern Nigeria

We use simple public goods games to investigate spousal behavior in Kano, northern Nigeria, one of the modern heartlands of polygyny. Most partners keep back at least half of their endowment from the common pool, but we find no evidence that polygynous households are less efficient than their monogamous counterparts. When men control the allocation, equal treatment of wives is common, but senior wives often receive more from their husbands, no matter what their contribution. However, the clearest result is that when men control the allocation, polygynous husbands receive a higher payoff compared to their wives and their monogamous counterparts

Probability weighting for losses and for gains among smallholder farmers in Uganda

Probability weighting is a marked feature of decision-making under risk. For poor people in rural areas of developing countries, how probabilities are evaluated matters for livelihoods decisions, especially the probabilities associated with losses. Previous studies of risky choice among poor people in developing countries seldom consider losses and do not offer a refined tracking of the probability-weighting function (PWF). We investigate probability weighting among smallholder farmers in Uganda, separately for losses and for gains, using a method (common consequence ladders) that allows refined tracking of the PWF for a population with low levels of literacy. For losses, we find marked probability weighting near zero, which is in line with evidence found in Western labs. For gains, the absence of probability weighting is remarkable, particularly its absence near 100%. We also find marked differences in probability weighting for traditional farmers which are in line with the observed livelihoods strategies in the study area

Village networks and entrepreneurial farming in Uganda

The transition from semi-subsistence farming to more entrepreneurial farming by the adoption of new crops or improved seeds is important for poverty reduction in developing countries. In rural societies, farmers’ propensity to experiment with new technologies is influenced by their access to information and support, provided by networks of friends and relatives. Considering that the same connection can share both information and support, we study the separate effects as well as the interaction of both network functions. Using two waves of data from a sample of Ugandan farmers, we find that the propensity to adopt new crops or improved seeds increases with the number of friends or relatives who adopted new crops or improved seeds before. The effect on the adoption of new crops is stronger if the same friends or relatives also provide support in the form of gifts or loans. At the same time, we find a positive effect of support that is conditional on friends or relatives having adopted new crops before