Three main changes in thinking about poverty have gained increasing currency over the past decade. First, the concept of poverty has broadened, with increasing attention to issues of vulnerability, inequality and human rights. Second, the causal structure has broadened to include causal variables, such as social, political, cultural, coercive and environmental capital. Third, the causal structu...

Based on the economic theory of the family, this paper constructs a model of remittances where the migrant, besides sending money to his family, also invests in his home country. The investment is looked after by a family member in return for some monetary compensation. The model focuses on two different cases: state-contingent transfers (transfers are tied to investment outcomes) and fixed tra...

This paper studies the relationship between mothers’ employment and children’s schooling in India. Using the second National Family Health Survey, the results of a multilevel probit model show that the correlation between mothers’ employment and their children’s schooling is negative. Women in poorer households are more likely to work but, given the negative correlation, their additional income...

Given the intrinsically sequential nature of child birth, timing of a child’s birth has consequences not only for itself, but also for the older and younger siblings. The paper thus argues that prior and posterior spacing between consecutive siblings are important measures of the intensity of competition among siblings for limited parental resources. While the available estimates of child morta...

This paper analyzes how preferences for a noneconomic characteristic (e.g., caste) can affect equilibrium patterns of matching, and empirically evaluates this in the context of middle-class Indian arranged marriages. We show theoretically how the equilibrium consequences of caste depend on whether preferences are towards one’s own group or for “marrying up.” We then estimate actual preferences ...

This paper examines whether disease burdens, especially prevalent in the tropics, contribute significantly to widening gender gaps in educational attainments. We estimate the impact of sudden exposure to the 1986 meningitis epidemic in Niger on girls’ education relative to boys. Our results suggest that increases in meningitis cases during epidemic years significantly reduce years of education ...

In the current age of trade and financial openness, local economies in developing countries are becoming increasingly exposed to external investments. The objective of the proposed two-sector model with environmental externalities is to provide an insight into the interaction between external investors and local communities with a focus upon the different strategies and income sources available...

The rapid increase in primary enrollment seen in many developing countries might further worsen the poor schooling quality often found in these countries. I estimate the effect of enrollment growth following the removal of primary school fees in Tanzania and find that it led to sizeable increases in the pupil-teacher ratio and a reduction in observable teacher quality, but rule out a substantia...

Empirical studies of the relationship between school inputs and test scores typically do not account for household responses to changes in school inputs. Evidence from India and Zambia shows that student test scores are higher when schools receive unanticipated grants; but there is no impact of grants that are anticipated. We show that the most likely mechanism for this result is that household...

Remittances and Income Smoothing Due to inadequate savings and binding borrowing constraints, income volatility can make households in developing countries particularly susceptible to economic hardship. We examine the role of remittances in either alleviating or increasing household income volatility using Mexican household level data over the 2000 through 2008 period. We correct for reverse ca...