Intra-household resource shares under poverty transfers: evidence from Ecuador

Abstract

This paper studies the effect of transfer programs on the allocation of resources among household members. Based on a collective household model and data from Ecuador, I find important intra-household inequalities, but the transfer produces resource redistribution among household members. Unlike existing approaches, I also employ a framework that accounts for other household structures, finding that transfers impact resource allocation in extended households with children. I validate the main findings using experimental data and document that in-kind transfers are comparable to cash transfers in improving the within-household redistribution of resources. I further examine the potential implications of this reallocation of resources in several domains and find that transfers increase women’s control of resources and reduce women’s poverty. I also show that changes in women’s control of resources driven by the transfer affect the household’s consumption patterns and how households react to unexpected shocks. These results contribute to understanding better the redistributive and behavioral effects of income support programs.