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Abstract
The paper reviews recent theory and empirical evidence testing unitary versus
collective models of the household. In contrast to the unitary model, the collective model
posits that individuals within households have different preferences and do not pool their
income. Moreover, the collective model predicts that intrahousehold allocations reflect
differences in preferences and "bargaining power" of individuals within the household.
Using new household data sets from Bangladesh, Indonesia, Ethiopia, and South Africa,
we present measures of individual characteristics that are highly correlated with
bargaining power, namely human capital and individually-controlled assets, evaluated at
the time of marriage. In all country case studies we reject the unitary model as a
description of household behavior, but to different degrees. Results suggest that assets
controlled by women have a positive and significant effect on expenditure allocations
toward the next generation, such as education and children's clothing. We also examine
individual-level education outcomes and find that parents do not have identical
preferences toward sons and daughters within or across countries.