Transfers, Intra-Household Inequality and Food Insecurity: Evidence from a Randomized Experiment

Abstract

This paper studies how intra-household inequality responds to transfers to women and whether this response affects household food insecurity. Using information from an experimental evaluation of a welfare program in Ecuador, we estimate a structural model of household behavior in the context of poverty subsidies. The results reveal significant intra-household disparities, but the program promotes resource redistribution among household members. The study further explores if the changes in women's control of resources induced by the transfer affect household food insecurity. Using women's resource control as a proxy for bargaining power, we provide evidence that when women control the majority of household resources, the household has a lower probability of experiencing food insecurity, higher food expenditure, better access to a varied diet, higher caloric intake and also changes the food insecurity coping strategies. Finally, this paper demonstrates that failing to consider within-household inequality could have significant implications when assessing the prevalence of food insecurity. These findings provide valuable insights into designing income support programs that enhance gender equity and reduce food insecurity.

Keywords: Resource Shares, Transfers, Control of Resources, Food Insecurity.

JEL Classification: D04, D19, I14, I38, J16.