Paper forthcoming in World Development
The paper “Rags and Riches: Relative prices, non-homothetic preferences and inequality in India”, written by The Choice Lab researcher Ingvild Almås jointly with Anders Kjelsrud (UiO), is accepted for publication in World Development
For further information, download a recent working paper version as PDF or read the abstract below.
|Members of a household depend on each other to share and cooperate. Conforming to traditional gender roles, however, may restrain potential efficiency gains within the household. Lack of efficiency may have important implications for the welfare of household members, especially in poor households. In the patriarchal society of Ethiopia, we experimentally create income differences between spouses, and investigate whether this affects the contributions in a public good game. Is the outcome more efficient when the husband, or the wife, has the higher endowment? Furthermore, we use additional experimental games of social preferences and qualitative interviews to shed light on the underlying mechanisms of household income allocations in a developing country.|