File2-page190 - Burgess & Zhuang (2002) Intra-household...

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Intra-household Allocation Test of gender bias: γ i j = ik , where j and k reFect boys and girls in the same age group. The hypothesis of equal treatment can be tested in a straightforward manner using an ± test. Run two types of variables on left hand side (i) Good that are considered to be integral to welfare of children (i.e., food, health, education). Differential treatment in these areas may have per- manent and irreversible welfare effects. The question is does adding a boy relative to a girl lead to lower/higher expenditures on these goods (assuming children exogenous) – not contributing resources to household and not involved in food, health, education allocation decisions. (ii) Adult goods not consumed by children. expenditures on these goods (e.g. alcohol, tobacco) can be thought of as indicators of parental welfare. Given a ²xed household budget, the addition of children can be modelled as a negative income effect (child costs displace adult good consumption)
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