Intrahousehold Resource Allocation in Rural Pakistan: A Semi-Parametric Analysis

Abstract

We estimate semiparametric Engel curves for rural Pakistan using a large household survey. This allows us to obtain consistent estimates of the effects of household size and composition on consumption patterns even when these demographic variables are correlated with an unknown function of income. The coefficients on the household composition variables are used to infer patterns of intrahousehold allocation. While there is little evidence of gender bias amongst children, adult males appear to get more than adult females. There is a tendency amongst males for workers to get more than dependents. There is no evidence of differential treatment of the elderly and higher birth-order children. We identify substantial economies of size in food consumption. We also find that Engel curces for food, adult goods and child goods are nonlinear, which suggests that the PIGLOG class of demand models in inappropriate.