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Wiley InterScience

The Economic Journal

The Economic Journal

Volume 116 Issue 513, Pages 627 - 658

Published Online: 11 Jul 2006

Journal compilation © 2010 by the Royal Economic Society (Registered Charity No. 231508)



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Alimony Rights and Intrahousehold Allocation of Resources: Evidence from Brazil
Marcos A. Rangel 1*
  1 University of Chicago

  * Funding from the Brazilian Ministry of Science and Technology (CNPq) and from the William and Flora Hewlett Population Fellowship is gratefully acknowledged. I have benefitted from comments by Shelley Clark, V. Joseph Hotz, Vida Maralani, Robert T. Michael, Christopher McKelvey, Elizabeth Peters, Vijayendra Rao, Luis Rubalcava, John Strauss, Duncan Thomas, two anonymous referees and participants of the Applied Microeconomics Proseminar at UCLA, of the Demography Workshop at the University of Chicago, of the PAA Meeting (2003), of the NEUDC Conference (2003) and of the BREAD Conference (April 2004), in particular Abhijit Banerjee and Michael Kremer. All remaining errors are mine. In loving memory of Lucas A. Rangel.

Copyright 2006 The Author. Journal compilation Royal Economic Society 2006

ABSTRACT

Can family policy affect well-being of individuals without altering the resources available to their families? This article examines the extension of alimony rights and obligations to cohabiting couples in Brazil. For women in intact relationships, alimony rights upon dissolution should improve outside options, strengthening their negotiating positions, and increasing their influence over intrahousehold allocation of resources. Robust econometric evidence indicates that more decision power in the hands of women impacts hours worked by female adults and investments in the education of children. This suggests that family policy and models of family decision making should take intrahousehold heterogeneity of preferences into account.


Submitted: 23 November 2004 Accepted: 21 October 2005

DIGITAL OBJECT IDENTIFIER (DOI)
10.1111/j.1468-0297.2006.01104.x About DOI

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