Journal of Population Economics, 25(1), 119-149, October 2011.
Existing evidence suggests that girls are differentially affected by income shocks and changes in bargaining power. Most studies, however, ignore household production and confound differential opportunity costs with changes in income or bargaining power. I disentangle these determinants of gender discrimination—preferences, income and time allocation—by comparing households with varying degrees of parental involvement. Results indicate that, controlling for household fixed effects, reducing the time available for
household production has a disproportionately negative effect on daughters. But, for a transitory income shock, daughters’ education is less income elastic. Increasing mothers’ bargaining power is most effective in narrowing the gender gap.