Intra-Household Resource Shares Under Poverty Transfers: Evidence from Ecuador

Abstract

This paper estimates a structural model of household behavior in the presence of cash transfers to recover the amount of resources allocated to men, women, and children. Using data from Ecuador, I find important intra-household inequalities, but the transfer produces resource redistribution among household members. I validate the main findings using experimental data and document that in-kind transfers have comparable effectiveness to cash transfers in improving the within-household redistribution of resources. To account for other family structures, I use a modification of the model and demonstrate that transfers impact resource allocation in extended households with children. I further examine the potential implications of this reallocation of resources in several domains and find that transfers increase women’s control of resources and reduce women’s poverty. I also show that when the mother controls the majority of the household resources, it affects the household’s consumption patterns and how households react to unexpected shocks. These results contribute to understanding better the redistributive and behavioral effects of income support programs.

Keywords: Resource Shares, Transfers, Control of Resources, Poverty, Consumption

JEL Classification: D12, D13, I31, I38, O12