Gender norms and intra-household allocation of labor: a CGE application to household economics

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This presentation was given by Diksha Arora (CIAT), as part of the Annual Scientific Conference hosted by the CGIAR Collaborative Platform for Gender Research. The event took place on 5-6 December 2017 in Amsterdam, the Netherlands, where the Platform is hosted (by KIT Royal Tropical Institute). Read more: http://gender.cgiar.org/gender_events/annual-scientific-conference-capacity-development-workshop-cgiar-collaborative-platform-gender-research/

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Gender norms and intra-household allocation of labor: A
CGE application to household economics
Diksha Arora & Codrina Rada
CIAT & University of Utah

Outline
Motivation
Research objective
Theoretical framework

Outline
Motivation
Research objective
Theoretical framework
Results

Outline
1 Motivation
2 Research objective
3 Theoretical framework
4 Results

Motivation
Traditionally, agricultural development organizations have been
concerned with increasing yields and land productivity
Policy action overlooks the channels through which higher yields are
obtained
These programs fail to notice it’s impact on labor supply and labor
productivity
Leading to undesirable consequences, lack of supply response and poor
adoption response

Research objective
We develop a tool to trace the channels of impact of a favorable
technology or an adverse shock
Ex-ante analysis - Useful to determine the potential impact ahead of
program implention
Ex post analysis - Analyzes the mechanisms that may cause unexpected
results, e.g. lack of supply response or poor adoption rates
Intra-household analysis is integrated in the framework
Investigation of how gendered institutions inﬂuence policy outcomes
Gender diﬀerential impact of shocks and policy actions

Methodology
Household accounting matrix (HAM)
Standard CGE approach - Prices, production, institutions and system
constraints
56 equations, 56 endogenous variables, 24 exogenous variables and 16
parameters
The economic problem of the man, the woman and the household
They maximize their own well-being given existing time and income
constraints
Labor allocation decisions between agricultural activities and leisure are
determined by preferences, technology and social norms

Social norms in household economy
Explicit modelling of social norms - The parameter for norms shows
the role of institutions in inﬂuencing labor allocation decisions
Endogenizing labor productivity - Work eﬀort is a function of leisure
time

Three scenarios of adverse shocks in the household
economy
Household care-crisis

Three scenarios of adverse shocks in the household
economy
Household care-crisis
Technolgy development in the household sector

Three scenarios of adverse shocks in the household
economy
Household care-crisis
Technolgy development in the household sector
Redistribution of household/unpaid care work

Household care-crisis
Table: Simulation results
Baseline Value Scenario I Scenario II Scenario III
Farm production 29.62 -2.42% 0.94% -2.67%
Subsistence production 28.57 3.00% 2.80% 1.07%
Household consumption (farm) 52.1 -2.72% 1.05% -0.18%
Man’s farm labor (hrs/day) 2.58 2.66 2.54 1.22
Woman’s farm labor (hrs/day) 3.02 2.83 3.09 4
Woman’s labor productivity 5.17 -1.07% 0.41% 5.47%
Woman’s HH labor (hrs/day) 7.61 7.88 7.50 6.19

Conclusions
Social norms are important determinants of intra-household labor and
resource allocation and therefore should be an integral part of formal
models of household economies
The strength of social norms matter. More stringent social norms
reduce the ability of households to address external shocks or beneﬁt
from development programs
Non-separation of production and consumption decisions in the
context of aforementioned social norms allow shocks in one sector to
propagate across activities
Policy interventions can beneﬁt from a thorough understanding of how
social norms impact the household

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