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Unpublished Paper
Do Peer Effects Influence the Household Bargain? Evidence from Children's Food Consumption in India
(2015)
  • Eeshani Kandpal, World Bank
  • Kathy Baylis, University of Illinois at Urbana-Champaign
Abstract

This paper uses primary data on women's social networks to estimate causal peer effects in the household bargain. Using an extension of a spatial weighting technique that relies of friends-of-friends to identify peer effects, we examine how a woman's friend's participation in an education program affects her physical mobility, access to outside employment, and probability of working outside the household, as well as her children's food consumption. Results show that peer effects have a significant impact on all proxies of female bargaining power. We decompose the overall peer effects into those on participants and non-participants, and focus on the effects on non-participant women who have participant friends. Results are consistent with the weak directionality assumption required for the identification of causal peer effects that participants inform and empower their non-participant friends, and not the other way around. Then, using household fixed effects, we find and overall positive effect of the mother's participant friends on children's food consumption. In particular, we find that the sons and daughters of non-participants who have participant friends eat more similar diets than sons and daughters of non-participants who have no participant friends. Finally, in heterogeneity analysis, we combine the Nash bargaining framework with demographic diffusion literature and identity economics to define and provide suggestive empirical evidence on three ways in which networks affect household decision making: (1) information, (2) influence, and (3) identity. While this analysis refrains from making welfare conclusions, our results highlight the presence of significant and complex peer effects in the household bargain.

Keywords
  • women's empowerment; female bargaining power; peer networks; India; child nutrition
Publication Date
2015
Citation Information
Eeshani Kandpal and Kathy Baylis. "Do Peer Effects Influence the Household Bargain? Evidence from Children's Food Consumption in India" (2015)
Available at: http://works.bepress.com/kathy_baylis/50/