Working Paper: NBER ID: w20702
Authors: Daniel Lafave; Duncan Thomas
Abstract: Whereas studies have established the intra-household distribution of resources affects allocation decisions, little is known about how these decisions are affected by the distribution of resources among co-resident and non co-resident extended family members. Drawing on theoretical models of collective decision-making, we use extremely rich data from Indonesia to establish that child health- and education-related human capital outcomes are affected by resources of extended family members who co-reside with the child and those who are not co-resident. Extended family members are not completely altruistic but their allocation decisions are apparently co-ordinated in a way that is consistent with Pareto efficiency.
Keywords: child wellbeing; extended families; resource allocation; human capital
JEL Codes: D1; I0; J13
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| resources of coresident family members (D13) | child health and education-related human capital outcomes (I21) |
| resources of non-coresident family members (J12) | child health and education-related human capital outcomes (I21) |
| maternal resources (J13) | child health and education-related human capital outcomes (I21) |
| paternal resources (Q34) | child health and education-related human capital outcomes (I21) |
| resources of grandparents and other non-coresident family members (J12) | child health and education-related human capital outcomes (I21) |
| household resources (D13) | child health and education-related human capital outcomes (I21) |