Portfolio decomposition and intrahousehold environments: evidence from Bangladesh

Abstract

Using a survey data from Bangladesh, this paper employs a simple decomposition method to investigate the possible role of inequality in husband and wife's portfolio holdings to various intrahousehold issues. Results indicate that wives' intrahousehold environments are affected more by their portfolio than by their husband's asset and income holdings. Wives who have inherited plots from their parents-in-law appear to belong to the better off group as well.

Acknowledgements

The author would like to acknowledge the Japanese Government for financial support and the IFPRI for making the data used in this research available. Insights and comments of Professor Kenn Ariga and Lawrence Dacuycuy are also gratefully acknowledged. The usual disclaimer applies.

Notes

¹ This line of reasoning incorporates what is central to micro approaches: methodological individualism. See Arrow (1994) for an elaborate exposition on this concept.

² See for example Becker (1973).

³ See Quisumbing and de la Brière (2000) for comprehensive survey and data description.

⁴ Also known as Khailoti, an amount paid to the bride's father. In recent years however, bride price has been replaced by dowry, an amount paid to the groom instead.