Gender Differences in Intra-Household Financial Decision-Making: An Application of Coarsened Exact Matching

Abstract

Most studies that explore collective models of intra-household decision-making use economic outcomes such as human capital, earnings, assets, and relative income shares as proxies of the relative distribution of bargaining power. These studies, however, fail to incorporate important measures of control over and management of the economic resources within households. In the current study, a direct measure of financial decision-making power within the household is used to directly assess the distribution of bargaining power. Coarsened exact matching, an identification strategy not yet applied in studies of this nature, is applied to couple-level observational data from South Africa’s longitudinal National Income Dynamics Study. The influence of gender differences in intra-household decision-making on resource allocations to per capita household expenditure is assessed. In the case of greater financial decision-making power in couples being assigned to wives rather than husbands, per capita household expenditure on education increases significantly. The empowerment of women with financial decision-making power therefore holds the promise of realizing the benefits of investments in human capital.

Influence of cultural norms and traditions on food insecurity among small-scale farmers in marmanet ward, laikipia county, Kenya

“…These results agree with a study conducted in South Africa which cited that households, where women made decisions on money allocation for food and other expenses like clothing and medical care, had high food security. However, in households where men made decisions on the amount of money allocated for food, there was low food security since men were found to allocate less money towards food and more money to some activities some of which were less basic (Booysen and Guvuriro, 2021). Therefore, women were directed on what to spend on food since men were the ones who were at the forefront to generate family income.…”

Management of CashFlow Practices in Micro Enterprises: Perspectives from Women-Owned SMEs

“…Women are considered multitasking individuals who demonstrate creativity in their activities (Hmieleski & Sheppard, 2019). Some studies indicate that women have a strong inclination for planning and managing household budgets (Fidelity, 2019;Booysen & Guvuriro, 2021). These abilities can be applied in a business context to effectively and efficiently manage finances for business success.…”

“…These abilities can be applied in a business context to effectively and efficiently manage finances for business success. However, some studies also observe weaknesses in the management skills of female entrepreneurs compared to male entrepreneurs (Booysen & Guvuriro, 2021).…”

Increasing women’s participation in wildlife governance in Zambia

“…Women's participation increases their income earning potential, either through formal employment as wildlife scouts or benefit sharing from CRB roles. When women earn more money, they prioritize family education, health and nutrition spending, increasing household wellbeing (Smith and Haddad, 2000;Armand et al, 2020;Booysen and Guvuriro, 2021). Involving women in natural resource governance and enforcement also increases the adoption of sustainable practices, crucial in both adapting to and mitigating the growing threat of climate change (Agarwal, 2009;Mwangi et al, 2011;Leisher et al, 2016;Beaujon Marin and Kuriakose, 2017).…”