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Shocks and Gender-Asset Dynamics
1. Impact of Shocks on Gender Differentiated
Asset Dynamics in Bangladesh
Muntaha Rakib, Julia Anna Matz
June 18, 2014
Corresponding author: muntaha_rakib@yahoo.com
2. Outline
• Background
• Objectives
• Data and sampling
• Results
• Conclusions
• Policy suggestions
• Some preliminary results from ongoing paper
2
3. • To analyze economic well-being of a household or a
community, asset analysis is necessary
– converted into cash for consumption
– collateral in the credit market
– buffer stock against shocks
• Goal of gender responsive development
– not necessarily to ensure equal control over assets
– but that both have control over important assets
3
Background
Why asset and gender analysis?
4. Why assets and shocks are gender
differentiated
• Types of asset differ by different types of ownership
• husband
• wife
• joint
• Men and women experience shocks differently due to
• different roles and responsibilities
• different ability to withstand shocks
• some shocks only affect women (divorce, death of husband etc.)
(White 1992, Antonopoulos and Floro 2005. Quisumbing et al. 2011, Frankenberg et al. 2003; Quisumbing
2009, Goldstein 1999; Dercon and Krishnan 2000; Duflo and Udry 2003).
4
Background cont.
5. How assets and shocks are interlinked
• Control over assets
• increases income
• reduces vulnerability to shocks
• helps in moving out of poverty
• Shocks affect assets
force selling tangible assets
foregoing future investment in non-tangible assets
trapped in poverty
5
Background cont.
6. Which assets and shocks?
Assets
• Natural capital
– Land
• Physical capital
– Consumer durables
– Agricultural tools
– Vehicles
– Jewelry
• Livestock
– Poultry
– Cattle
• Financial capital
– Outstanding credit
Shocks
• Climatic shocks
– Flood
– Cyclone
– Drought
• Other negative shocks
– Dowry/wedding expenses
– Death/illness
• Positive shocks
– Dowry receipt/inheritance
– Remittances
6
Context
7. Objectives
• To explore the impact of shocks on intrahousehold asset
dynamics and gender differentiated ownership and to
look at which assets husbands and wives try to keep
intact within their asset portfolio
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8. Data and Sampling
• Two waves of panel data
• Bangladesh Climate
Change Adaptation
Survey 2010 is used as a
baseline
• 800 agricultural
households in 40 unions
(administrative units) were
surveyed in 2010
• Resurvey was conducted
on the same from June to
October 2012 to construct
a panel
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9. Asset ownership and prevalence of shocks
• Households were able to accumulate land, livestock, and nonland physical assets
between the two survey rounds
• Women held fewer livestock and physical assets than their husbands
• Husbands own 96 percent of the households’ total land area
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Type of shock Mean
Share of households affected by weather shocks according to
household/community reports
Flood 0.38/0.32
Drought 0.45/0.52
Cyclone/tornado 0.31/0.29
Share of households affected by other negative shocks
Death or illness of a household member 0.26
Dowry or wedding expenses 0.05
Share of households affected by positive shocks
Receipt of a remittance 0.20
Receipt of a dowry or inheritance 0.04
• Reported household and community-level shocks, between 2010 and 2012
10. Impact of shocks on intrahousehold asset dynamics
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Impact of shocks on the comprehensive asset index (fixed effects estimates)
Results
*, **, *** Significant at 10%; 5% and 1% respectively
Note: Standard errors are clustered at the household level and are given in parentheses
12. Financial assets
• Flood and cyclone reduce credit
– covariate
– less collateral
• Droughts increase credit
– area specific
– seasonal in nature
• Remittances are associated with more credit
– more collateral available
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Results
13. Impact of shocks on disaggregated physical capital by
type of ownership
Husbands
– remittances increase stock of agricultural tools and consumer
durables instead of jewelry and poultry
– flood and cyclone negatively affect cattle and consumer
durables
Wives
– remittance receipts increase jewelry and poultry rather than
consumer durables and agricultural tools
– flood and cyclone reduce stock of poultry
– drought and dowry negatively affect consumer durables and
vehicles
Joint
– husbands and wives jointly diversify asset portfolio towards
jewelry and cattle from agriculture tools and vehicles
– dowry payment reduces joint poultry
13
Results
14. Conclusions
• Cyclone negatively affect husbands in general
• Negative non-weather shocks adversely affect both
husbands’ and wives’ assets
• Sale of livestock is commonly used as a coping
mechanism
• Jointly owned assets are protected, other than for
coping with dowry and drought, which are anticipated in
terms of time but not in terms of severity
• Husbands’ Income generating tools such as land,
vehicles and agricultural assets are generally protected
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15. Policy suggestions
• Initiating programs to protect women’s assets
– those are generally found to be beneficial to children’s well-being (health, education, and
nutrition)
• Encouraging women’s ownership of assets that are not readily sold to
cope with shocks
– assets increase female bargaining power which is associated with more social and human
capital of women
• Reforming and enforcing inheritance laws to protect female inheritance
– land ownership enables women to be more active in financial markets
• Laws prohibiting dowry practice should be strictly implemented
– awareness on this issue together with the provision of credit could enhance the asset
holdings of both spouses
• Policy design needs to incorporate the protection of gendered ownership
of assets in the event of shocks
– Social protection programs for instance
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