Dowry and Intrahousehold Bargaining: Evidence from China

Abstract

This paper analyzes the relationship between a woman’s intrahousehold bargaining position and her welfare within marriage. Simultaneity problems common to the literature are overcome by using dowry to proxy for bargaining position. Omitted variable bias is addressed by using grain shocks in the year preceding marriage and sibling sex composition as instruments for dowry. Instrumented dowry positively impacts several measures of a wife’s welfare, including time allocation, household purchases, and the wife’s decision-making authority, thereby offering strong evidence to support collective models of the household.