Publication: Saving for Dowry: Evidence from Rural India
Loading...
Date
2020-10
ISSN
Published
2020-10
Author(s)
Editor(s)
Abstract
The ancient custom of dowry, that is, bride-to-groom marriage payments, remains ubiquitous in many contemporary societies. This paper examines whether dowry impacted household decision making and resource allocation in rural India during 1986-2007. Utilizing variation in firstborn gender and dowry amounts across marriage markets, the paper finds that the prospect of higher dowry payments at the time of a daughter's marriage leads parents to save more in advance. The higher savings are primarily financed through increased paternal labor supply. This implies that people are farsighted; they work and save more today with payoff in the distant future.
Link to Data Set
Citation
“Anukriti, S.; Kwon, Sungoh; Prakash, Nishith. 2020. Saving for Dowry: Evidence from Rural India. Policy Research Working Paper;No. 9453. © World Bank. http://hdl.handle.net/10986/34686 License: CC BY 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Publication Geopolitics and the World Trading System(Washington, DC: World Bank, 2024-12-23)Until the beginning of this century, the GATT/WTO system worked. Economic research provided a compelling explanation. It showed that if governments maximize the well-being of their own countries broadly defined, GATT/WTO principles would facilitate mutually beneficial cooperation over their trade policy choices. Now heightened geopolitical rivalry seems to have undermined the WTO. A simple transposition of the previous rationalization suggests that geopolitics and trade cooperation are not compatible. The paper shows that this is only true if rivalry eclipses any consideration of own-country well-being. In all other circumstances, there are gains from trade cooperation even with geopolitics. Furthermore, the WTO’s relevance is in question only if it adheres too rigidly to its existing rules and norms. Through measured adaptation to the geopolitical imperative, the WTO can continue to thrive as a forum for multilateral trade cooperation in the age of geopolitics.Publication The Macroeconomic Implications of Climate Change Impacts and Adaptation Options(Washington, DC: World Bank, 2025-05-29)Estimating the macroeconomic implications of climate change impacts and adaptation options is a topic of intense research. This paper presents a framework in the World Bank's macrostructural model to assess climate-related damages. This approach has been used in many Country Climate and Development Reports, a World Bank diagnostic that identifies priorities to ensure continued development in spite of climate change and climate policy objectives. The methodology captures a set of impact channels through which climate change affects the economy by (1) connecting a set of biophysical models to the macroeconomic model and (2) exploring a set of development and climate scenarios. The paper summarizes the results for five countries, highlighting the sources and magnitudes of their vulnerability --- with estimated gross domestic product losses in 2050 exceeding 10 percent of gross domestic product in some countries and scenarios, although only a small set of impact channels is included. The paper also presents estimates of the macroeconomic gains from sector-level adaptation interventions, considering their upfront costs and avoided climate impacts and finding significant net gross domestic product gains from adaptation opportunities identified in the Country Climate and Development Reports. Finally, the paper discusses the limits of current modeling approaches, and their complementarity with empirical approaches based on historical data series. The integrated modeling approach proposed in this paper can inform policymakers as they make proactive decisions on climate change adaptation and resilience.Publication Global Poverty Revisited Using 2021 PPPs and New Data on Consumption(Washington, DC: World Bank, 2025-06-05)Recent improvements in survey methodologies have increased measured consumption in many low- and lower-middle-income countries that now collect a more comprehensive measure of household consumption. Faced with such methodological changes, countries have frequently revised upward their national poverty lines to make them appropriate for the new measures of consumption. This in turn affects the World Bank’s global poverty lines when they are periodically revised. The international poverty line, which is based on the typical poverty line in low-income countries, increases by around 40 percent to $3.00 when the more recent national poverty lines as well as the 2021 purchasing power parities are incorporated. The net impact of the changes in international prices, the poverty line, and new survey data (including new data for India) is an increase in global extreme poverty by some 125 million people in 2022, and a significant shift of poverty away from South Asia and toward Sub-Saharan Africa. The changes at higher poverty lines, which are more relevant to middle-income countries, are mixed.Publication Global Socio-economic Resilience to Natural Disasters(Washington, DC: World Bank, 2025-05-22)Most disaster risk assessments use damages to physical assets as their central metric, often neglecting distributional impacts and the coping and recovery capacity of affected people. To address this shortcoming, the concepts of well-being losses and socio-economic resilience—the ability to experience asset losses without a decline in well-being—have been proposed. This paper uses microsimulations to produce a global estimate of well-being losses from, and socio-economic resilience to, natural disasters, covering 132 countries. On average, each $1 in disaster-related asset losses results in well-being losses equivalent to a $2 uniform national drop in consumption, with significant variation within and across countries. The poorest income quintile within each country incurs only 9% of national asset losses but accounts for 33% of well-being losses. Compared to high-income countries, low-income countries experience 67% greater well-being losses per dollar of asset losses and require 56% more time to recover. Socio-economic resilience is uncorrelated with exposure or vulnerability to natural hazards. However, a 10 percent increase in GDP per capita is associated with a 0.9 percentage point gain in resilience, but this benefit arises indirectly—such as through higher rate of formal employment, better financial inclusion, and broader social protection coverage—rather than from higher income itself. This paper assess ten policy options and finds that socio-economic and financial interventions (such as insurance and social protection) can effectively complement asset-focused measures (e.g., construction standards) and that interventions targeting low-income populations usually have higher returns in terms of avoided well-being losses per dollar invested.Publication From Patriarchy to Policy(Washington, DC: World Bank, 2025-05-29)Legal institutions play an important role in shaping gender equality in economic domains, from inheritance to labor markets. But where do gender equal laws come from? Using cross-country data on social norms and legal equality, this paper investigates the socio-cultural roots of gender inequity in the legal system and its implications for female labor force participation. To identify the impact of social norms, the analysis uses an empirical strategy that exploits pre-modern differences in ancestral patriarchal culture as an instrument for present-day gender norms. The findings show that ancestral patriarchal culture is a strong predictor of contemporary norms, and conservative social norms are associated with more gender inequality in the de jure legal framework, the de facto implementation of laws, and the labor market. The paper presents evidence for a political selection mechanism linking norms to laws: countries with more conservative norms elect political leaders who are more hostile to gender equality, who then pass less progressive legislation. The results highlight the cultural roots and political drivers of legalized gender inequality.
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Saving for Dowry(Elsevier, 2022-01)The ancient custom of dowry, i.e., bride-to-groom marriage payments, remains ubiquitous in many contemporary societies. Using data from 1986–2007, this paper examines whether dowry impacts intertemporal resource allocation and other household decisions in rural India. Utilizing variation in firstborn gender and dowry amounts across marriage markets, we find that the prospect of higher dowry payments at the time of a daughter’s marriage leads parents to save more in advance. The higher savings are primarily financed through increased paternal labor supply. This implies that people are farsighted; they work and save more today with payoff in the distant future.Publication The Contribution of African Women to Economic Growth and Development : Historical Perspectives and Policy Implications, Part I, The Pre-colonial and Colonial Periods(World Bank, Washington, DC, 2012-04)Bringing together history and economics, this paper presents a historical and processual understanding of women's economic marginalization in Sub-Saharan Africa from the pre-colonial period to the end of colonial rule. It is not that women have not been economically active or productive; it is rather that they have often not been able to claim the proceeds of their labor or have it formally accounted for. The paper focuses on the pre-colonial and colonial periods and outlines three major arguments. First, it discusses the historical processes through which the labor of women was increasingly appropriated even in kinship structures in pre-colonial Africa, utilizing the concepts of "rights in persons" and "wealth in people." Reviewing the processes of production and reproduction, it explains why most slaves in pre-colonial Africa were women and discusses how slavery and slave trade intensified the exploitation of women. Second, it analyzes how the cultivation of cash crops and European missionary constructions of the individual, marriage, and family from the early decades of the 19th century sequestered female labor and made it invisible in the realm of domestic production. Third, it discusses how colonial policies from the late 19th century reinforced the "capture" of female labor and the codification of patriarchy through the nature and operation of the colonial economy and the instrumentality of customary law. The sequel to this paper focuses on the post-colonial period. It examines the continuing relevance and impact of the historical processes this paper discusses on post-colonial economies, and suggests some policy implications.Publication Do Conditional Cash Transfers Lead to Medium-Term Impacts?(World Bank, Washington, DC, 2011)Conditional cash transfer (CCT) programs are becoming a popular tool for alleviating short-term poverty and reducing the inter-generational transmission of poverty. More than 30 developing and transition countries have implemented these programs, providing incentives to poor households to make investments in the human capital of their children. Programs vary in scale, transfer size, conditionality's, eligibility, and implementation features. This report is structured around five chapters as follows: the first chapter gives an overview of the program, the context in which it was implemented and available evidence on the impacts of the Female School Stipend Program (FSSP) as well as other CCTs. Chapter two focuses on the questions this evaluation sets out to answer and the methods and information used to answer them. The third chapter presents the results from the analysis and is structured around three evaluation questions regarding average impact, heterogeneity of impacts, and spillover effects. Chapter four performs the robustness checks of the findings, examining whether they are sensitive to preprogram trends, measurement error, endogenous compositional changes, and crowding-out effects. Finally, the conclusion discusses the implications of the results, some limitations of this evaluation, and areas that require further work.Publication FYR Macedonia Gender Diagnostic : Gaps in Endowments, Access to Economic Opportunities and Agency(Washington, DC, 2013-01)Former Yugoslav Republic (FYR) of Macedonia has closed several gaps in gender inequalities, particularly in education and health, but key disparities persist in access to economic opportunities and agency, particularly among certain ethnic groups. This report provides an overview of gender disparities in several outcomes related to human and physical endowments, access to economic opportunities, and agency. In addition, it offers potential explanations of these gaps and, in the process, identifies knowledge gaps to be addressed in future research. On average, FYR Macedonia has achieved gender equality in health and in education; however, gender disparities persist for certain population subgroups. However, women are more likely than men to choose general programs or social sciences as their primary field of education. Both men and women are unlikely to undertake additional training following their initial education, but each for different reasons: women are more likely than men to cite family obligations as a key factor in this decision (19 percent of women compared to 1.5 percent of men) as women devote a much larger percentage of their time to domestic activities. In addition, only a limited number of children enroll in pre-school. Female labor force participation is low, particularly among women who have received only a primary education or less. Although female-managed businesses are as productive as male-managed businesses, few women are entrepreneurs. Women's participation in collective actions is limited, and gender stereotypes remain pervasive. Looking forward, further efforts to increase women's access to economic opportunities in FYR Macedonia are needed. Policies aimed at fostering the competitiveness of the private sector for job creation is a key for addressing the high unemployment rates faced by both men and women. In the case of FYR Macedonia, policies can also increase female labor force participation by affecting the potential wages or the reservation wages of less skilled women.Publication The Economic Participation of Adolescent Girls and Young Women : Why Does It Matter?(World Bank, Washington, DC, 2008-12)This note summarizes available research on the impact of schooling and employment of adolescent girls and young women on earnings and poverty reduction, demographic outcomes, child development outcomes, and female empowerment. It identifies key implications of this research for the formulation of public policy.
Users also downloaded
Showing related downloaded files
Publication Remarks at the United Nations Biodiversity Conference(World Bank, Washington, DC, 2021-10-12)World Bank Group President David Malpass discussed biodiversity and climate change being closely interlinked, with terrestrial and marine ecosystems serving as critically important carbon sinks. At the same time climate change acts as a direct driver of biodiversity and ecosystem services loss. The World Bank has financed biodiversity conservation around the world, including over 116 million hectares of Marine and Coastal Protected Areas, 10 million hectares of Terrestrial Protected Areas, and over 300 protected habitats, biological buffer zones and reserves. The COVID pandemic, biodiversity loss, climate change are all reminders of how connected we are. The recovery from this pandemic is an opportunity to put in place more effective policies, institutions, and resources to address biodiversity loss.Publication Remarks to the Annual Meetings 2020 Development Committee(World Bank, Washington, DC, 2020-10-16)David Malpass, President of the World Bank Group, announced that the Board approved a fast track approach to emergency health support programs that now covers 111 countries. Most projects are well advanced, with average disbursement upward of 40 percent. The goal is to take broad, fast action early. The operational framework presented back in June has positioned the Bank to help countries address immediate health threats and social and economic impacts and maintain our focus on long-term development. The Bank is making good progress toward the 15-month target of 160 billion dollars in surge financing. Much of it is for the poorest countries and will take the form of grants or low-rate, long-maturity loans. IFC, through the Global Health Platform, will be providing financing to vaccine manufacturers to foster expanded production of COVID-19 vaccines in both part 1 and 2 countries, providing production is reserved for emerging markets. The Development Committee holds a unique place in the international architecture. It is the only global forum in which the Governments of developed countries and the Governments of developing countries, creditor countries and borrower countries, come together to discuss development and the ‘net transfer of resources to developing countries.’ The current International Financial Architecture system is skewed in favor of the rich and creditor countries. It is important that all voices are heard, so Malpass urged the Ministers of developing countries to use their voice and speak their minds today. Malpass urged consideration of how we can build a new approach to debt restructuring that allows for a fair relationship and balance between creditors and debtors. This will be critical in restoring growth in developing countries; and helping reverse the inequality.Publication Economic Recovery(World Bank, Washington, DC, 2021-04-06)World Bank Group President David Malpass spoke about the world facing major challenges, including COVID, climate change, rising poverty and inequality and growing fragility and violence in many countries. He highlighted vaccines, working closely with Gavi, WHO, and UNICEF, the World Bank has conducted over one hundred capacity assessments, many even more before vaccines were available. The World Bank Group worked to achieve a debt service suspension initiative and increased transparency in debt contracts at developing countries. The World Bank Group is finalizing a new climate change action plan, which includes a big step up in financing, building on their record climate financing over the past two years. He noted big challenges to bring all together to achieve GRID: green, resilient, and inclusive development. Janet Yellen, U.S. Secretary of the Treasury, mentioned focusing on vulnerable people during the pandemic. Kristalina Georgieva, Managing Director of the International Monetary Fund, focused on giving everyone a fair shot during a sustainable recovery. All three commented on the importance of tackling climate change.Publication Media and Messages for Nutrition and Health(World Bank, Washington, DC, 2020-06)The Lao People’s Democratic Republic (Lao PDR) has experienced rapid and significant economic growth over the past decade. However, poor nutritional outcomes remain a concern. Rates of childhood undernutrition are particularly high in remote, rural, and upland areas. Media have the potential to play an important role in shaping health and nutrition–related behaviors and practices as well as in promoting sociocultural and economic development that might contribute to improved nutritional outcomes. This report presents the results of a media audit (MA) that was conducted to inform the development and production of mass media advocacy and communication strategies and materials with a focus on maternal and child health and nutrition that would reach the most people from the poorest communities in northern Lao PDR. Making more people aware of useful information, essential services and products and influencing them to use these effectively is the ultimate goal of mass media campaigns, and the MA measures the potential effectiveness of media efforts to reach this goal. The effectiveness of communication channels to deliver health and nutrition messages to target beneficiaries to ensure maximum reach and uptake can be viewed in terms of preferences, satisfaction, and trust. Overall, the four most accessed media channels for receiving information among communities in the study areas were village announcements, mobile phones, television, and out-of-home (OOH) media. Of the accessed media channels, the top three most preferred channels were village announcements (40 percent), television (26 percent), and mobile phones (19 percent). In terms of trust, village announcements were the most trusted source of information (64 percent), followed by mobile phones (14 percent) and television (11 percent). Hence of all the media channels, village announcements are the most preferred, have the most satisfied users, and are the most trusted source of information in study communities from four provinces in Lao PDR with some of the highest burden of childhood undernutrition.Publication South Asia Development Update, April 2024: Jobs for Resilience(Washington, DC: World Bank, 2024-04-02)South Asia is expected to continue to be the fastest-growing emerging market and developing economy (EMDE) region over the next two years. This is largely thanks to robust growth in India, but growth is also expected to pick up in most other South Asian economies. However, growth in the near-term is more reliant on the public sector than elsewhere, whereas private investment, in particular, continues to be weak. Efforts to rein in elevated debt, borrowing costs, and fiscal deficits may eventually weigh on growth and limit governments' ability to respond to increasingly frequent climate shocks. Yet, the provision of public goods is among the most effective strategies for climate adaptation. This is especially the case for households and farms, which tend to rely on shifting their efforts to non-agricultural jobs. These strategies are less effective forms of climate adaptation, in part because opportunities to move out of agriculture are limited by the region’s below-average employment ratios in the non-agricultural sector and for women. Because employment growth is falling short of working-age population growth, the region fails to fully capitalize on its demographic dividend. Vibrant, competitive firms are key to unlocking the demographic dividend, robust private investment, and workers’ ability to move out of agriculture. A range of policies could spur firm growth, including improved business climates and institutions, the removal of financial sector restrictions, and greater openness to trade and capital flows.