Using South African data, the paper poses six questions about the determinants of subjective well-being. Much of the paper is concerned with the role of relative concepts. We find that comparator income, when measured as the average income of others in the local residential cluster, enters the household's utility function positively (close neighbors are 'positives', not 'negatives'), but that the income of more distant others enters negatively. Race-based comparator groups are also important in racially divided South Africa. Relative income is more important to happiness at higher levels of absolute income. Potential explanations and implications of these results are considered
This paper presents and analysis of the determinants of school participation in rural north India, based on a recent household survey which includes detailed information on school characteristics. School participation, especially among girls, responds to a wide range of variables, including parental education and motivation, social background, dependency ratios, work opportunities, village development, teacher postings, teacher regularity and midday meals. The remarkable lead achieved by the state of Himachal Pradesh is fully accounted for by these variables. School quality matters, but it is not related in a simple way to specific inputs.
The reliability of the household consumption based (Engel curve) methodology in detecting gender bias has been called into question because it has generally failed to confirm bias even where it exists. This paper seeks to find explanations for this failure by exploiting a dataset that has educational expenditure information at the individual level and also, by aggregation, at the household level. We find that in the basic education age groups, the discriminatory mechanism in education is via differential enrolment rates for boys and girls. Education expenditure conditional on enrolment is equal for boys and girls. The Engel curve method fails for two reasons. Firstly, it models a single equation for the two stage process. Second, even when we make individual and household level expenditure equations as similar as possible, the household level equation still fails to 'pick up' gender bias in about one third of the cases where the individual-level equation shows significant bias. The paper concludes that only individual based data can accurately capture the full extent of gender bias.
Unemployment in South Africa is so widespread that it demands an explanation. This paper examines a central question about South African unemployment. Why do the unemployed not enter the informal sector, as is common in other developing countries? The data do not support the idea that unemployment is largely voluntary. The policy implications-that government should diminish labor market segmentation and the obstacles to entering the productive informal sector-may be relevant also to other developing countries with high unemployment.
This study investigates the relationship between parental schooling on the one hand, and child health outcomes (height and weight) and parental health-seeking behavior (immunization status of children), on the other. Using unique data from Pakistan, we aim to understand the mechanisms through which parental schooling promotes better child health and health-seeking behavior. The following "pathways" are investigated: educated parents' greater household income, exposure to media, literacy, labor market participation, health knowledge, and the extent of maternal empowerment within the home. We find that while father's education is positively associated with the immunization decision, mother's education is more critically associated with longer term health outcomes in OLS equations. Instrumental Variable (IV) estimates suggest that father's health knowledge is most positively associated with immunization decisions while mother's health knowledge and her empowerment within the home are the channels through which her education impacts her child's height and weight respectively.
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