Productivity risk is pervasive in underdeveloped countries. This paper highlights a way in which underdevelopment exacerbates productivity risk. Productivity shocks cause larger changes in the wage when workers are poorer, less able to migrate, and more credit-constrained because of such workers' inelastic labor supply. This equilibrium wage effect hurts workers. In contrast, it acts as insurance for landowners. Agricultural wage data for 257 districts in India for 1956-87 are used to test the predictions, with rainfall as an instrument for agricultural productivity. In districts with fewer banks or higher migration costs, the wage is much more responsive to fluctuations in productivity.
Is the high degree of gender inequality in developing countries-in education, personal autonomy, and more-explained by underdevelopment itself? Or do the societies that are poor today hold certain cultural views that lead to gender inequality? This article discusses several mechanisms through which, as countries grow, gender gaps narrow. I argue that while much of the GDP/gender-inequality relationship can be explained by the process of development, society-specific factors are also at play: Many countries that are poor today have cultural norms that exacerbate favoritism toward males. Norms such as patrilocality and concern for women's "purity" help explain the male-skewed sex ratio in India and China and low female employment in India, the Middle East, and North Africa, for example. I also discuss why the sex ratio has become more male-skewed with development. Finally, I lay out some policy approaches to address gender inequality.
Child stunting in India exceeds that in poorer regions like sub-Saharan Africa. Data on over 168,000 children show that, relative to Africa, India's height disadvantage increases sharply with birth order. We posit that India's steep birth order gradient is due to favoritism toward eldest sons, which affects parents' fertility decisions and resource allocation across children. We show that, within India, the gradient is steeper for high-son-preference regions and religions. The gradient also varies with sibling gender as predicted. A back-of-the-envelope calculation suggests that India's steeper birth order gradient can explain over one-half of the India-Africa gap in average child height. (JEL C61, D72, D82, D83, K10, M11)
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