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Parental Background and Childrens Human Capital Development - - PowerPoint PPT Presentation

Parental Background and Childrens Human Capital Development Throughout Childhood and Adolescence: Evidence from Four Low- and Middle- Income Countries Andreas Georgiadis Young Lives Study Department of International Development University


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Parental Background and Children’s Human Capital Development Throughout Childhood and Adolescence: Evidence from Four Low- and Middle- Income Countries

Andreas Georgiadis Young Lives Study Department of International Development University of Oxford

CSAE Conference 19 March 2012

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  • My paper asks the following questions:

1) What is the association of different markers of parental background with children’s human capital in low- and middle- income country contexts? 2) How do these associations differ across children of different ages and across different national and cultural contexts?

  • This is important in order to understand:
  • the channels of the intergenerational transmission of

poverty and inequality over the individuals’ life-course in developing countries

Overview

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  • There are the following gaps in existing work:

1) there is not much evidence on the association of SES with

child’s cognitive and non-cognitive skills 2) the vast majority of empirical studies consider parental background factors in isolation that makes the interpretation of results uncertain 3) evidence on the evolution of the association between parental background factors and child’s human capital over the child’s life-course are almost non-existent

Overview

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  • We address the gaps in existing work by:

1) using data from the Young Lives cohort study in Ethiopia,

India, Peru and Vietnam 2) considering, simultaneously, the association of a wide-range

  • f parental background dimensions with measures of children’s

human capital at different ages of the child’s life-course

Overview

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  • We find evidence that:
  • parental income is the most important predictor of child’s

nutritional status and cognitive achievement across countries and at all stages of childhood

  • parental education has a weak or no association with

children’s human capital measures

  • mother’s personality traits are the most important predictors of

children’s noncognitive skills across countries and at all stages

  • f childhood
  • the association of mother’s aspirations for child’s education

with the child’s cognitive and noncognitive skills increases with children’s age

Overview

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  • Mechanisms via which parental background may impact child’s

human capital as postulated by economic theory

Conceptual Framework

Parental Budget Parental Preferences Parental Productivity Child’s Human Capital

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  • Under self-productivity and dynamic complementarity (Cunha

and Heckman, 2007) in the child’s human capital production technology, the associations of parental background markers with child’s human capital measures are expected to increase with child’s age

  • Child development literature suggests that as the child grows old

the importance of home environment diminishes

Conceptual Framework

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  • We use data on two cohorts of children in the 2006 and 2009

survey rounds of the Young Lives cohort study from Ethiopia, India (Andhra Pradesh), Peru and Vietnam

  • In 2006 the two cohorts were around 5 and 12 years old
  • In 2009 the two cohorts were around 8 and 15 years old

Data

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  • Our dependent variables are:
  • children’s height-for-age Z score
  • children’s Peabody Picture Vocabulary Test (PPVT)

test score

  • children’s noncognitive skills index (a composite

indicator combining items measuring self-efficacy and self- esteem of the child)

Dependent Variables

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  • Independent variables include:
  • child characteristics: age, birth order
  • parental background dimensions such as:
  • mother’s demographics: age, ethnicity/caste
  • household wealth (wealth index)
  • mother’s and father’s education (years of schooling)
  • mother’s height (in centimetres)
  • mother’s non-cognitive skills index (a composite indicator

combining items capturing self-esteem, self-efficacy and feelings of stigma/discrimination)

Independent Variables

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  • mother’s subjective well-being (a composite of 1-9 ladder of life satisfaction and

expected 1-9 life satisfaction in the future)

  • mother’s bargaining power (a composite of items measuring mother’s control
  • ver a range of household resources (land, livestock, wages, etc.)
  • mother’s social capital (a composite of items capturing information on mother’s

memberships and leading position in organisations, mother’s trust in people and government organisations and extent of social networks i.e. number of friends, etc.)

  • mother’s aspirations for child’s future education (in years of schooling)
  • community characteristics such as: region of the community and

whether community is urban/rural

Independent Variables

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Results: HAZ Score

Table 2: Regressions for HAZ-score Across countries and Age groups

Age 5 Age 8 Ethiopia India Peru Vietnam Ethiopia India Peru Vietnam Wealth index 0.169*** 0.105*** 0.144*** 0.049 0.224*** 0.163*** 0.165*** 0.116*** (0.038) (0.033) (0.031) (0.033) (0.036) (0.035) (0.030) (0.037) Mother’s education 0.022** 0.003 0.018*** 0.028*** 0.008 0.018** 0.010 0.017** (0.009) (0.007) (0.007) (0.007) (0.008) (0.007) (0.006) (0.008) Father’s education 0.011 0.012** 0.008 0.022***

  • 0.005

0.004 0.015** 0.018** (0.008) (0.005) (0.007) (0.007) (0.008) (0.006) (0.007) (0.008) Mother’s height 0.047*** 0.042*** 0.063*** 0.050*** 0.039*** 0.041*** 0.059*** 0.047*** (0.004) (0.005) (0.004) (0.004) (0.004) (0.004) (0.004) (0.004) Mother’s bargaining power 0.010 (0.025) 0.025 (0.023)

  • 0.050**

(0.020)

  • 0.018

(0.019) 0.010 (0.026) 0.022 (0.023)

  • 0.044**

(0.020)

  • 0.014

(0.021) Mother’s noncognitive skills

  • 0.014

(0.028) 0.043** (0.022) 0.003 (0.022)

  • 0.014

(0.021)

  • 0.004

(0.025)

  • 0.004

(0.025)

  • 0.011

(0.022) 0.031 (0.026) Mother’s subjective well-being 0.074*** (0.028) 0.065*** (0.025) 0.033 (0.021) 0.076*** (0.023) 0.034 (0.026) 0.005 (0.026) 0.023 (0.020) 0.042 (0.024) Mother’s social capital

  • 0.029
  • 0.003

0.026 0.004

  • 0.010

0.029 0.031

  • 0.001

(0.033) (0.023) (0.024) (0.021) (0.033) (0.023) (0.054) (0.024) Mother’s aspirations for child’s education

  • 0.002

(0.015) 0.012 (0.009) 0.042*** (0.013) 0.003 (0.011) 0.020 (0.012) 0.014** (0.007) 0.062*** (0.016) 0.002 (0.011) R-squared 0.17 0.18 0.40 0.37 0.15 0.21 0.36 0.30 Observations 1908 1937 1950 1956 1881 1923 1937 1943 Age 12 Age 15 Ethiopia India Peru Vietnam Ethiopia India Peru Vietnam Wealth index 0.191*** 0.052 0.242*** 0.093 0.124** 0.043 0.137*** 0.098** (0.052) (0.043) (0.058) (0.053) (0.055) (0.045) (0.041) (0.043) Mother’s education 0.023 0.029*** 0.000

  • 0.012

0.015 0.033*** 0.011

  • 0.016

(0.014) (0.010) (0.010) (0.011) (0.013) (0.011) (0.009) (0.010) Father’s education 0.001

  • 0.003

0.006 0.026** 0.009

  • 0.007
  • 0.002

0.027*** (0.013) (0.008) (0.012) (0.012) (0.013) (0.009) (0.010) (0.010) Mother’s height 0.034*** 0.032*** 0.062*** 0.050*** 0.040*** 0.038*** 0.059*** 0.059*** (0.007) (0.06) (0.007) (0.006) (0.007) (0.006) (0.006) (0.005) Mother’s bargaining power

  • 0.039

(0.040) 0.029 (0.034)

  • 0.017

(0.031)

  • 0.045

(0.033)

  • 0.064

(0.042) 0.010 (0.032) 0.012 (0.029)

  • 0.021

(0.029) Mother’s noncognitive skills 0.042 (0.041)

  • 0.003

(0.033) 0.053 (0.034) 0.020 (0.032)

  • 0.060

(0.043)

  • 0.016

(0.030)

  • 0.012

(0.034)

  • 0.054**

(0.027) Mother’s subjective well-being 0.047 (0.040) 0.075** (0.034)

  • 0.012

(0.031) 0.062** (0.032) 0.006 (0.041) 0.041 (0.035) 0.045 (0.033) 0.032 (0.030) Mother’s social capital

  • 0.027

(0.044)

  • 0.020

(0.037)

  • 0.012

(0.037)

  • 0.095***

(0.034) 0.048 (0.075) 0.007 (0.036)

  • 0.102

(0.095)

  • 0.028

(0.031) Mother’s aspirations for child’s education

  • 0.002

(0.016)

  • 0.010

(0.012) 0.021 (0.020) 0.058** (0.023)

  • 0.015

(0.017) 0.035*** (0.014) 0.025 (0.016) 0.032 (0.020) R-squared 0.2 0.14 0.41 0.25 0.23 0.16 0.31 0.26 Observations 974 977 680 988 968 970 669 967

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Results: PPVT SCORE

Table 3: Regressions for PPVT Across Countries and Age Groups

Age 5 Age 8 Ethiopia India Peru Vietnam Ethiopia India Peru Vietnam Wealth index 1.284*** 1.380** 2.701*** 2.310*** 5.688*** 3.083*** 3.297*** 2.263*** (0.467) (0.701) (0.561) (0.618) (1.046) (0.780) (0.363) (0.689) Mother’s education 0.535*** 1.097*** 0.172 0.370** 0.783*** 0.727*** 0.421*** 0.860*** (0.113) (0.145) (0.125) (0.146) (0.274) (0.197) (0.085) (0.179) Father’s education 0.130 0.361*** 0.276** 0.551*** 0.626** 0.394*** 0.506*** 0.544*** (0.092) (0.121) (0.136) (0.135) (0.243) (0.148) (0.087) (0.166) Mother’s height 0.058

  • 0.037
  • 0.121

0.089 0.072

  • 0.028
  • 0.035

0.051 (0.045) (0.071) (0.069) (0.062) (0.109) (0.088) (0.047) (0.080) Mother’s bargaining power 0.090 (0.275)

  • 0.306

(0.454)

  • 0.023

(0.368)

  • 1.207***

(0.370)

  • 0.093

(0.653)

  • 0.061

(0.618) 0.122 (0.248)

  • 0.277

(0.479) Mother’s noncognitive skills

  • 0.033

(0.274) 0.108 (0.429) 0.180 (0.383) 0.156 (0.384) 2.235*** (0.682) 2.643*** (0.665) 0.504** (0.255) 0.982 (0.585) Mother’s subjective well-being 0.322 (0.260) 1.910*** (0.522) 0.883** (0.352) 0.396 (0.425)

  • 0.616

(0.687)

  • 0.590

(0.616) 0.369 (0.264)

  • 0.309

(0.552) Mother’s social capital 0.585 0.253

  • 1.562***
  • 0.037

0.201

  • 0.412
  • 2.119***
  • 1.480***

(0.343) (0.473) (0.428) (0.377) (0.915) (0.599) (0.691) (0.551) Mother’s aspirations for child’s education 0.096 (0.104) 0.308* (0.173) 0.408** (0.192) 0.149 (0.168) 0.846*** (0.293) 0.506*** (0.172) 0.957*** (0.206) 0.721*** (0.220) R-squared 0.3 0.26 0.3 0.36 0.47 0.23 0.45 0.32 Observations 1861 1851 1903 1747 1857 1901 1842 1848 Age 12 Age 15 Ethiopia India Peru Vietnam Ethiopia India Peru Vietnam Wealth index 2.495** 1.525 2.324*** 4.543*** 5.154*** 4.834*** 2.149*** 5.147*** (1.133) (0.965) (0.831) (1.090) (1.111) (1.220) (0.753) (1.047) Mother’s education 0.492 0.263 0.466*** 0.541** 0.314 0.924*** 0.257 0.232 (0.253) (0.208) (0.143) (0.228) (0.288) (0.265) (0.143) (0.211) Father’s education 0.274 0.259

  • 0.116

1.001*** 0.386 0.178 0.543*** 0.224 (0.250) (0.166) (0.185) (0.258) (0.253) (0.211) (0.188) (0.234) Mother’s height 0.098 0.105

  • 0.066

0.254 0.131 0.186 0.010 0.041 (0.127) (0.117) (0.088) (0.133) (0.139) (0.145) (0.091) (0.112) Mother’s bargaining power 0.953 (0.776)

  • 0.106

(0.703) 0.712 (0.502)

  • 1.616**

(0.663)

  • 0.566

(0.914) 0.003 (0.902)

  • 0.487

(0.471)

  • 0.249

(0.632) Mother’s noncognitive skills 3.149*** (0.767) 0.729 (0.763) 0.804 (0.529)

  • 0.932

(0.720) 1.435 (0.942) 0.864 (0.924)

  • 0.045

(0.490) 0.063 (0.593) Mother’s subjective well-being 0.283 (0.807) 2.852*** (0.778)

  • 1.032

(0.540)

  • 1.191

(0.694) 0.104 (0.940) 0.379 (0.980)

  • 0.159

(0.543)

  • 0.703

(0.656) Mother’s social capital

  • 1.549

(0.821) 0.767 (0.724)

  • 0.473

(0.549) 0.303 (0.633) 0.770 (1.645) 1.963** (0.906)

  • 5.016***

(1.507) 0.554 (0.646) Mother’s aspirations for child’s education 1.257*** (0.345) 1.961*** (0.292) 0.941** (0.388) 2.422*** (0.676) 1.333*** (0.415) 2.945*** (0.309) 2.146*** (0.416) 2.347*** (0.528) R-squared 0.35 0.27 0.34 0.50 0.3 0.31 0.4 0.41 Observations 953 971 672 945 962 944 652 947

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Figure 8 The Size of the Coefficient of Mother’s Aspirations for Child’s Education in Child’s PPVT Score Regressions

Results: PPVT Score

1 2 3 Coefficient 5 8 12 15 Child's age in years Ethiopia India Peru Vietnam

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Results: Noncognitive Skills Index

Table 4: Regressions for Child’s Noncognitive Skills Across Countries and Age Groups

Age 8 Age 12 Ethiopia India Peru Vietnam Ethiopia India Peru Vietnam Wealth index 0.150*** 0.056 0.069** 0.039 0.073 0.123*** 0.166*** 0.057 (0.030) (0.030) (0.032) (0.036) (0.040) (0.042) (0.055) (0.056) Mother’s education 0.004 0.011 0.020*** 0.010

  • 0.016

0.012 0.030*** 0.017 (0.008) (0.006) (0.008) (0.008) (0.010) (0.009) (0.012) (0.012) Father’s education 0.007 0.005

  • 0.002
  • 0.008

0.034*** 0.018** 0.010 0.026** (0.007) (0.005) (0.008) (0.007) (0.009) (0.008) (0.014) (0.013) Mother’s height

  • 0.001

0.002 0.002

  • 0.001

0.002 0.007 0.006 0.001 (0.004) (0.003) (0.004) (0.003) (0.005) (0.005) (0.007) (0.005) Mother’s bargaining power

  • 0.036

(0.024)

  • 0.039

(0.021) 0.003 (0.023)

  • 0.025

(0.022) 0.037 (0.029)

  • 0.012

(0.031)

  • 0.035

(0.036)

  • 0.063

(0.033) Mother’s noncognitive skills 0.145*** (0.025) 0.387*** (0.025) 0.081*** (0.027) 0.196*** (0.028) 0.381*** (0.033) 0.318*** (0.040) 0.129*** (0.043) 0.240*** (0.033) Mother’s subjective well-being 0.007 (0.024) 0.015 (0.023) 0.031 (0.023) 0.029 (0.026) 0.044 (0.029)

  • 0.044

(0.035)

  • 0.047

(0.041) 0.025 (0.034) Mother’s social capital 0.207*** 0.074*** 0.146** 0.056** 0.074** 0.025

  • 0.038
  • 0.052

(0.033) (0.021) (0.062) (0.024) (0.035) (0.033) (0.039) (0.034) Mother’s aspirations for child’s education

  • 0.011

(0.011) 0.021*** (0.007) 0.040** (0.016) 0.037*** (0.012) 0.018 (0.014) 0.032** (0.012) 0.032 (0.026) 0.058** (0.026) R-squared 0.23 0.30 0.11 0.16 0.31 0.21 0.24 0.14 Observations 1877 1917 1921 1949 979 994 685 990 Age 15 Ethiopia India Peru Vietnam Wealth index 0.135*** 0.040 0.182*** 0.111 (0.046) (0.044) (0.050) (0.057) Mother’s education 0.009 0.012 0.049*** 0.015 (0.010) (0.010) (0.011) (0.012) Father’s education 0.014 0.021**

  • 0.020

0.007 (0.010) (0.008) (0.014) (0.013) Mother’s height 0.003 0.008

  • 0.005
  • 0.002

(0.005) (0.005) (0.007) (0.006) Mother’s bargaining power 0.045 (0.034)

  • 0.058

(0.032)

  • 0.015

(0.037) 0.024 (0.035) Mother’s noncognitive skills 0.177*** (0.039) 0.000 (0.033) 0.143*** (0.041) 0.071** (0.034) Mother’s subjective well-being 0.016 (0.035) 0.027 (0.033) 0.010 (0.040) 0.030 (0.033) Mother’s social capital 0.259*** (0.069) 0.160*** (0.034) 0.082 (0.121) 0.092** (0.040) Mother’s aspirations for child’s education 0.010 (0.013) 0.069*** (0.012) 0.052** (0.026) 0.058*** (0.022) R-squared 0.24 0.15 0.12 0.11 Observations 973 974 672 970

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Figure 8 The Size of the Coefficient of Mother’s Aspirations for Child’s Education in Child’s Noncognitive Skills Regressions

Results: Noncognitive Skills Index

  • .02

.02 .04 .06 .08 Coefficient 5 8 12 15 Child's age in years Ethiopia India Peru Vietnam

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  • The most important predictors for height-for-age across countries

and ages include:

  • household wealth
  • mother’s height and
  • parental education
  • no systematic pattern is found on the magnitude of

these associations across age groups

  • The most important predictors for cognitive achievement across

countries and ages include :

  • household wealth
  • parental education and
  • mother’s aspirations for the child’s education
  • The only systematic pattern in the magnitude of the associations

across age groups is observed for mother’s aspirations for the child’s education

Summary of Results

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  • The most important predictors for noncognitive skills across

countries and ages include:

  • mother’s noncognitive skills
  • social capital
  • household wealth
  • mother’s aspirations for the child’s education
  • parental education
  • The only systematic pattern in the magnitude of the associations

across age groups is observed for mother’s aspirations for the child’s education

Summary of Results

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  • There is a lack of studies in the development literature on that consider

simultaneously the association of a wide range of parental background markers with children’s human capital across countries and how these associations may change with children’s age

  • We address this gap by using data from the Young Lives cohort study in Ethiopia,

India, Peru and Vietnam to investigate the association of parental background factors with indicators of child’s human capital at ages 5, 8, 12 and 15 years

  • Our key findings are that across countries and age groups:
  • parental income is the most important predictor of child’s nutritional status and

cognitive achievement across countries and at all stages of childhood

  • parental education has a weak or no association with children’s human capital

measures

  • mother’s personality traits are the most important predictors of children’s

noncognitive skills across countries and at all stages of childhood

  • the association of mother’s aspirations for child’s education with the child’s

cognitive and noncognitive skills increases with children’s age

Conclusions

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The Making of the Middle Class in Africa

Mthuli Ncube and Abebe Shimeles African Development Bank CSAE Conference 2013: Economic Development in Africa 17-19 March 2013, St Catherine’s College, Oxford

Ncube & Shimeles (AfDB) The Making of the Middle Class in Africa CSAE Conference 2013: Economic Developme / 29

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Why study the middle class in Africa?

The middle class is often associated with stability and driver of social and economic reforms (e.g Sridharan, 2004, Loyza et al, 2012 ) A large middle class ushers in possibilities for social mobility and trickling down of wealth or inclusive growth (e.g. Doepke and Zilibotti, 2007; Birdsall, 2010) A large middle class is a source of dynamic economic growth and entrepreneurship (Easterly, 2001; Desgoigts and Jaramillo, 2009);

Ncube & Shimeles (AfDB) The Making of the Middle Class in Africa CSAE Conference 2013: Economic Developme / 29

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Objectives of this study

Building on existing work of the African Development Bank (2011), this study attempts to provide answers to the following questions? * What is the size of the middle class and how has it evolved

  • ver time? who are the middle class and what are their

characteristics? How path dependent is a middle class status at the household level? * What explains cross-country variation in the size of the middle class? speci…cally we focus on institutions and policy. For the latter governance, education and health are examined in some detail.

Ncube & Shimeles (AfDB) The Making of the Middle Class in Africa CSAE Conference 2013: Economic Developme / 29

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Identifying the middle class

Some focus on relative de…nition where the upper and lower bounds are a certain percentage of either the median or mean income (e.g. Birdsall, Graham and Pettinato, 2000) Others use absolute de…nition such as individuals living below 2$ and 10$ per day (Banerjee and Du‡o, 2008; Milanovic and Yitzhaki, 2002; Bhalla, 2008 and others). While each de…nition has some grounding, arbitrariness cannot be avoided. In our case we used the African median weighted by population which is 0.5-0.7. most important however is to study the whole distribution provided in the Kernel density.

Ncube & Shimeles (AfDB) The Making of the Middle Class in Africa CSAE Conference 2013: Economic Developme / 29

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On Data and Method

The main source of data for this paper comes from Demographic Health Surveys (DHS) for 42 countries covering the 1990s and 2000s. A pseudo-panel constructed on the basis of age-sex cohort was also used to look into mobility across classes and also role of education and health as important pathways. In addition we report results from rich panel data set from Ethiopia that covers 10 years in …ve waves to analyze the dynamics of the middle class.

Ncube & Shimeles (AfDB) The Making of the Middle Class in Africa CSAE Conference 2013: Economic Developme / 29

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SLIDE 25

Note on data and methods

A composite asset index was constructed for each household using the Multiple Correspondence Analysis method (MCA). This is a method close to a Principal Components analysis and is appropriate for the type of response in the data (mostly categorical) The MCA helps establish weight for the assets based on optimal variance attributed to each of the categories.

Ncube & Shimeles (AfDB) The Making of the Middle Class in Africa CSAE Conference 2013: Economic Developme / 29

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SLIDE 26

MCA in brief

Wj = ∑

k i=1 aicij

i represents the k assets that individual j possesses at a point in time to achieve a welfare level Wj , which could be cardinal or unit free (ordinal) depending on how the components enter the welfare measure.

Ncube & Shimeles (AfDB) The Making of the Middle Class in Africa CSAE Conference 2013: Economic Developme / 29

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SLIDE 27

MCA in brief

asset index =

11

i=1 mi

j=1

wijZij wij are the computed weights A question Qi with mi answer choices is transformed into a set of binary question Zij, j = 1...mi in such a way that choosing modality j

  • f question Qi is equivalent to Zik = 0 for k 6= j and Zij = 1.

Ncube & Shimeles (AfDB) The Making of the Middle Class in Africa CSAE Conference 2013: Economic Developme / 29

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Results

The average size of the middle class that we estimated from the DHS data is strikingly closer to the …gure reported in AfDB(2011): * in the late 2000 (2006-2009) the size of the middle class in Africa on the average was around 14%. * AfDB(2011) reported 13.4% for 2010 based on consumption expenditure lying between $4-$20 per day per person. Our report from DHS data showed clear sign of increasing middle class from 5% in the 1990s to 15%. AfDB(2011) did not show much improvement.

Ncube & Shimeles (AfDB) The Making of the Middle Class in Africa CSAE Conference 2013: Economic Developme / 29

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SLIDE 29

Trends in the size of middle class

Figure 1: Trend in the size of middle class and Gini coe¢cient in asset index

Ncube & Shimeles (AfDB) The Making of the Middle Class in Africa CSAE Conference 2013: Economic Developme / 29

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SLIDE 30

Results

Asset-based estimates of middle class are highly correlated with consumption based measures

Ncube & Shimeles (AfDB) The Making of the Middle Class in Africa CSAE Conference 2013: Economic Developme / 29

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SLIDE 31

Results

Except for a few, most countries recorded growth of the middle class since the 1990s Change in the middle class size(%population)

Ncube & Shimeles (AfDB) The Making of the Middle Class in Africa CSAE Conference 2013: Economic Developme / 29

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SLIDE 32

Size of middle class, poverty and inequality

It is possible for the size of the middle class to decrease following a dramatic decline in poverty and inequality (see case of Egypt: based

  • n DHS Figure 4)

Figure 4: Kernel density of Asset Index for Egypt

Ncube & Shimeles (AfDB) The Making of the Middle Class in Africa CSAE Conference 2013: Economic Developme / 29

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SLIDE 33

Size of middle class, poverty and inequality

Or for size of middle class to increase followed also by signi…cant decline in poverty and inequality (case of Ghana : based on DHS-Figure 5) Figure 5: Kernel density for Ghana

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Size of middle class, poverty and inequality

Or size of middle class to decline following an increase in poverty and inequality (case of Madagascar) Figure 6: Kernel density for Madagascar

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SLIDE 35

Mobility into and out of middle class status

Table 1: Transition Matrix

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SLIDE 36

(cont’d)

Table 1: Transition Matrix

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SLIDE 37

(cont’d)

Table 1: Transition Matrix

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SLIDE 38

Ethiopian Case

Transition matrix for self-reported wealth status in urban Ethiopia: 1994-2004

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SLIDE 39

Survival function for middle class status in Ethiopia

Strong state dependence

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SLIDE 40

Cross-country correlates of size of middle class:

Exogenous factors and initial conditions are important

Higher level of ethnic fractionalization is correlated with low incidence

  • f middle class in Africa

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SLIDE 41

Cross country correlates

Size of the middle class is strongly correlated with initial level of development

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The Role of Institutions:

Random e¤ects estimation of determinants of asset index Governance, ethnicity, education and health remain important correlates with the making of middle class

Ncube & Shimeles (AfDB) The Making of the Middle Class in Africa CSAE Conference 2013: Economic Developme / 29

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SLIDE 43

The Role of Social Capital:

Trust is important even after controlling for the e¤ect of inequality in assets

Random e¤ects estimation of determinants of asset index

Ncube & Shimeles (AfDB) The Making of the Middle Class in Africa CSAE Conference 2013: Economic Developme / 29

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Education:

The role of education may slow down with increase in its supply

Regression coe¢cients of education and mean years of education

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Ethnic Division

Growth in the size of middle class is much slower in countries where ethnic division is high suggesting again some structural bottlenecks

Growth rate in asset index and some initial conditions

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Concluding Remarks

Size of middle class is rising in most African countries: which is a good thing The probability of maintaining a middle class status is also fairly high with real possibilities to move up as well as slip back into poverty. Ethnicity, initial per capita income, level of trust among citizens shape the evolution of middle class

Ncube & Shimeles (AfDB) The Making of the Middle Class in Africa CSAE Conference 2013: Economic Developme / 29

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Concluding Remarks

From a policy perspective, it is evident that improving governance conditions and investing on education and health can take countries a long way in improving the size of the middle class. Would nurturing the size of the middle class compatible with short term and long term interests of national governments? We do not know at this point.

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Thank You

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Introduction Previous literature and testable hypotheses Data Results from basic regressions A closer look at religion, conflicts, and education. Summary

Violence against women in Sub-Saharan Africa

Andreas Kotsadam1 Sara Cools2

1University of Oslo 2BI Norwegian Business School

19 March 2013

Andreas Kotsadam, Sara Cools Violence against women

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Introduction Previous literature and testable hypotheses Data Results from basic regressions A closer look at religion, conflicts, and education. Summary

Motivation

Domestic violence is prevalent in all societies but to different degrees. It entails large costs in terms of women’s health, productivity, shame, and fear. Fear of violence affect more women than those actually beaten. Other family members suffer, in particular children.

Andreas Kotsadam, Sara Cools Violence against women

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Introduction Previous literature and testable hypotheses Data Results from basic regressions A closer look at religion, conflicts, and education. Summary Andreas Kotsadam, Sara Cools Violence against women

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Introduction Previous literature and testable hypotheses Data Results from basic regressions A closer look at religion, conflicts, and education. Summary

What we do

Using microdata for over 540 000 women and almost 200 000 men we:

1 Examine the variation in acceptance and actual wife beating

across time and space.

2 Explore explanations at both the individual and contextual

level.

3 Explore hypotheses regarding conflict, religion, and education

using spatial data, historical exposure and reforms.

Andreas Kotsadam, Sara Cools Violence against women

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Introduction Previous literature and testable hypotheses Data Results from basic regressions A closer look at religion, conflicts, and education. Summary

Preview of Results

Female employment at the individual as well as at the societal level is associated with more wife beating. So is living in a community with more wealth inequality. Individual attitudes toward beating predicts actual violence, also living in communities that accept wife beating. We find no heightened risk of exposure to wife beating during conflicts. Having more education, or a partner with more education is correlated with less risk of wife beating but we find no effects

  • f education using educational reforms.

Andreas Kotsadam, Sara Cools Violence against women

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Introduction Previous literature and testable hypotheses Data Results from basic regressions A closer look at religion, conflicts, and education. Summary

Outline

1

Previous literature and testable hypotheses

2

Data

3

Results from basic regressions

4

A closer look at religion, conflicts, and education.

5

Summary

Andreas Kotsadam, Sara Cools Violence against women

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Introduction Previous literature and testable hypotheses Data Results from basic regressions A closer look at religion, conflicts, and education. Summary

Previous literature

There are many different explanations for why men abuse their partners. Evolutionary psychology and radical feminism both claim that control of women’s sexuality is central. The large variation across time and space suggests social factors are important. We focus on resources, religion, inequality, and conflict.

Andreas Kotsadam, Sara Cools Violence against women

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Introduction Previous literature and testable hypotheses Data Results from basic regressions A closer look at religion, conflicts, and education. Summary

Resources

Individual level resources (wealth, employment, education) lead to autonomy and autonomy is argued to reduce violence. On the other hand, increased resources may lead to a backlash:

1 A threat to male dominance as resources carry symbolic value. 2 Violence may be used to reinstate men’s bargaining power. Andreas Kotsadam, Sara Cools Violence against women

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Introduction Previous literature and testable hypotheses Data Results from basic regressions A closer look at religion, conflicts, and education. Summary

Religion

Religious traditions shape attitudes, both at the individual and societal level. Whether this influence is in a conservative and patriarchal direction is unclear and contested. Nunn (2011) finds that Protestantism in Africa is associated with higher gender equality in education while Catholicism is associated with less.

Andreas Kotsadam, Sara Cools Violence against women

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Introduction Previous literature and testable hypotheses Data Results from basic regressions A closer look at religion, conflicts, and education. Summary

Inequality

Inequality among men and households is claimed to be a risk factor for wife beating (Jewkes 2002). So is inequality between men and women (True 2012).

Andreas Kotsadam, Sara Cools Violence against women

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Introduction Previous literature and testable hypotheses Data Results from basic regressions A closer look at religion, conflicts, and education. Summary

Conflict

Increased violence against women in times of conflict may not be solely driven by military strategies. Several studies find domestic violence to increase during conflicts (see True 2012 for an overview). Mechanisms are thought to be hypermasculinity and a celebration of armed masculinity. La Mattina (2013), however, finds no evidence of increased generalized wife beating after the conflict in Rwanda.

Andreas Kotsadam, Sara Cools Violence against women

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Introduction Previous literature and testable hypotheses Data Results from basic regressions A closer look at religion, conflicts, and education. Summary

Demographic and Health Surveys

DHS data with standardized surveys has been collected in developing countries since the 1980s. Since the 1990s DHS surveys include questions on attitudes toward wife beating. Data on actual experience of domestic violence has been collected since the late 1990s in a special module. Women of fertile age (15-49) are always interviewed and recently a smaller subset of men are also included.

Andreas Kotsadam, Sara Cools Violence against women

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Introduction Previous literature and testable hypotheses Data Results from basic regressions A closer look at religion, conflicts, and education. Summary Andreas Kotsadam, Sara Cools Violence against women

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Introduction Previous literature and testable hypotheses Data Results from basic regressions A closer look at religion, conflicts, and education. Summary

Attitudes toward wife beating

For women there are 50 surveys with attitudes toward wife beating including 540 842 persons. 21 517 clusters, in 242 regions, in 29 countries for the years 1992-2011. 195 188 men from 22 countries between 1999-2011.

Andreas Kotsadam, Sara Cools Violence against women

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Introduction Previous literature and testable hypotheses Data Results from basic regressions A closer look at religion, conflicts, and education. Summary

Measures (1)

Respondents are asked if a husband is justified in beating his wife if she:

1 goes out without telling him, 2 neglects the children, 3 argues with him, 4 refuses to have sex with him, 5 or burns the food. Andreas Kotsadam, Sara Cools Violence against women

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Introduction Previous literature and testable hypotheses Data Results from basic regressions A closer look at religion, conflicts, and education. Summary

Measures (2)

We create two different variables from these questions:

1 Beat=1 if the person agrees with at least one of the

  • statements. 55 % of women.

2 Nrbeat= number of statements the respondent agrees with.

1.6 on average.

Andreas Kotsadam, Sara Cools Violence against women

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Introduction Previous literature and testable hypotheses Data Results from basic regressions A closer look at religion, conflicts, and education. Summary Andreas Kotsadam, Sara Cools Violence against women

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Introduction Previous literature and testable hypotheses Data Results from basic regressions A closer look at religion, conflicts, and education. Summary

Actual wife beating

Only women who have ever had a parther are asked. We have data from 21 surveys including 108 087 women. 9 426 clusters, in 154 regions, in 15 countries for the years 2003-2011.

Andreas Kotsadam, Sara Cools Violence against women

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Introduction Previous literature and testable hypotheses Data Results from basic regressions A closer look at religion, conflicts, and education. Summary

Measures (1)

A special domestic violence module is used with: Specifically trained staff. Strict protocol to ensure privacy. A modified Conflict Tactics Scale with many different questions. 12 different questions ranging from pushing, shaking and slapping to attacking with gun, knife or other weapon.

Andreas Kotsadam, Sara Cools Violence against women

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Introduction Previous literature and testable hypotheses Data Results from basic regressions A closer look at religion, conflicts, and education. Summary

Measures (2)

We create two different variables from these questions:

1 Physical violence=1 if the woman has ever experienced any

type of abuse: 32 %.

2 Violence last year= If the respondent has been abused last

year: 27 %.

Andreas Kotsadam, Sara Cools Violence against women

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Introduction Previous literature and testable hypotheses Data Results from basic regressions A closer look at religion, conflicts, and education. Summary Andreas Kotsadam, Sara Cools Violence against women

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Introduction Previous literature and testable hypotheses Data Results from basic regressions A closer look at religion, conflicts, and education. Summary

Results from basic regressions

All these regressions: Include year and region fixed effects. Include region specific time trends. Cluster the standard errors at the DHS cluster level.

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Introduction Previous literature and testable hypotheses Data Results from basic regressions A closer look at religion, conflicts, and education. Summary

Attitudes toward violence (Table 2 column 4)

VARIABLES beat urban

  • 0.024***

(0.004) age

  • 0.009***

(0.001) age2 0.009*** (0.001) working 0.008*** (0.003) schoolyears

  • 0.012***

(0.000) husband_schoolyears

  • 0.004***

(0.000)

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Introduction Previous literature and testable hypotheses Data Results from basic regressions A closer look at religion, conflicts, and education. Summary

Continued (Table 2 column 4)

VARIABLES beat number_children 0.007*** (0.000) wealth_quintile

  • 0.007***

(0.001) christian

  • 0.007

(0.005) muslim 0.017*** (0.006)

Andreas Kotsadam, Sara Cools Violence against women

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Introduction Previous literature and testable hypotheses Data Results from basic regressions A closer look at religion, conflicts, and education. Summary

Actual violence (Table 4 column 4)

VARIABLES physical urban 0.017*** (0.005) age 0.006*** (0.001) age2

  • 0.013***

(0.002) working 0.050*** (0.003) schoolyears

  • 0.003***

(0.001) husband_schoolyears

  • 0.003***

(0.000)

Andreas Kotsadam, Sara Cools Violence against women

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Introduction Previous literature and testable hypotheses Data Results from basic regressions A closer look at religion, conflicts, and education. Summary

Continued (Table 4 column 4)

VARIABLES physical number_children 0.010*** (0.001) wealth_quintile 0.003 (0.002) muslim

  • 0.082***

(0.009) christian

  • 0.009

(0.008)

Andreas Kotsadam, Sara Cools Violence against women

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Introduction Previous literature and testable hypotheses Data Results from basic regressions A closer look at religion, conflicts, and education. Summary

Nonlinear relationship with education

.2 .4 .6 .8 S hare of w om en 1 2 3

Source: Own calculations based on DHS data

by level of educational attainment

Attitudes and experience of violence

beat physical_violence

Andreas Kotsadam, Sara Cools Violence against women

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Introduction Previous literature and testable hypotheses Data Results from basic regressions A closer look at religion, conflicts, and education. Summary

Household wealth is only correlated with attitudes

.2 .4 .6 S hare of w om en 1 2 3 4 5

Source: Own calculations based on DHS data

by wealth quintile

Attitudes and experience of violence

beat physical_violence

Andreas Kotsadam, Sara Cools Violence against women

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Introduction Previous literature and testable hypotheses Data Results from basic regressions A closer look at religion, conflicts, and education. Summary

Contextual level variables

We aggregate our variables of main interest to the cluster and regional level using the Jacknife method. We also create a gini coefficient of wealth inequality. We include country fixed effects and country specific time trends. Standard errors are clustered at the regional level when regional variables are included.

Andreas Kotsadam, Sara Cools Violence against women

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Introduction Previous literature and testable hypotheses Data Results from basic regressions A closer look at religion, conflicts, and education. Summary

Results of contextual variables (1)

The cluster level seems to be more important than the regional level. This is also confirmed by multilevel regressions. More education for women seems unrelated to risk of wife beating. While living in areas where men are more educated is more dangerous.

Andreas Kotsadam, Sara Cools Violence against women

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Introduction Previous literature and testable hypotheses Data Results from basic regressions A closer look at religion, conflicts, and education. Summary

Results of contextual variables (2)

Having more women working in the cluster is correlated with more violence. So is living in a cluster with more Christians. But living in a context with more Muslims is correlated with less violence. Living in a more wealth unequal area is strongly correlated with more violence.

Andreas Kotsadam, Sara Cools Violence against women

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Introduction Previous literature and testable hypotheses Data Results from basic regressions A closer look at religion, conflicts, and education. Summary

The relationship between attitudes and actual beating

At the individual level, thinking wife beating is ok is correlated with an 8 ppt higher actual experience. Contextual acceptability of wife beating is a strong predictor of being a victim, also when controlling for individual attitudes.

Andreas Kotsadam, Sara Cools Violence against women

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Introduction Previous literature and testable hypotheses Data Results from basic regressions A closer look at religion, conflicts, and education. Summary

A closer look at Christianity

Following Nunn (2010, 2011) we use data on historical missionary influence from a map by Roome (1924). We know the position of all Catholic and Protestant missionary stations in Africa at the time. Nunn (2010) shows that these missions explain Christianity today and Nunn (2011) shows that women with ancestors exposed to Protestant missions have higher education.

Andreas Kotsadam, Sara Cools Violence against women

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Introduction Previous literature and testable hypotheses Data Results from basic regressions A closer look at religion, conflicts, and education. Summary Andreas Kotsadam, Sara Cools Violence against women

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Introduction Previous literature and testable hypotheses Data Results from basic regressions A closer look at religion, conflicts, and education. Summary

Missionary stations and wife beating

Reduced form results show that living close to a historical location of a Protestant (but not a Catholic) mission is correlated with less acceptance toward wife beating. Living close to where any type of mission was situated is correlated with more actual wife beating. As we believe the link is via more religiosity we instrument Christianity with historical exposure to missions and find that the second stage effects of being Christian is strongly correlated with less acceptance of albeit more actual wife beating.

Andreas Kotsadam, Sara Cools Violence against women

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Introduction Previous literature and testable hypotheses Data Results from basic regressions A closer look at religion, conflicts, and education. Summary

No causal interpretation

Even though the first stages are strong and plausible and we are unable to reject that the instruments valid we do not give the results a causal interpretation. Missionary stations were not allocated randomly. Nunn (2010, 2011) controls for historic railway lines, explorer routes, soil quality, and water resources among other things.

Andreas Kotsadam, Sara Cools Violence against women

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Introduction Previous literature and testable hypotheses Data Results from basic regressions A closer look at religion, conflicts, and education. Summary

Conflicts

We use the UCDP GED dataset with areas exposed to deadly conflicts in Africa since 1989. The dataset includes the starting and end dates of conflicts as well as the number of deaths. We merge the conflict polygons with our DHS clusters and calculate the distance in time to exposure to conflicts.

Andreas Kotsadam, Sara Cools Violence against women

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Introduction Previous literature and testable hypotheses Data Results from basic regressions A closer look at religion, conflicts, and education. Summary Andreas Kotsadam, Sara Cools Violence against women

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Introduction Previous literature and testable hypotheses Data Results from basic regressions A closer look at religion, conflicts, and education. Summary Andreas Kotsadam, Sara Cools Violence against women

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Introduction Previous literature and testable hypotheses Data Results from basic regressions A closer look at religion, conflicts, and education. Summary

Education

Following Fenske (2012) we exploit a number of educational reforms to see the effects on wife beating (he looks at polygamy). In particular, we exploit the primary school expansion in Nigeria in 1976 (Osili and Long 2008), the expansion of secondary school in Zimbabwe in 1980 (Aguero and Bharadway 2012, Aguero and Ramachandran 2012), and the extension of primary school by one year in Kenya in 1985 (Chicoine 2012) as sources of exogenous variation. We find no effects of education on violence using these reforms, but neither can we reject quite large effects.

Andreas Kotsadam, Sara Cools Violence against women

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Introduction Previous literature and testable hypotheses Data Results from basic regressions A closer look at religion, conflicts, and education. Summary

Summary (1)

Wife beating is widely accepted in SSA and the levels of exposure are high. Female employment is associated with more violence as is living in places where more women work. Being Muslim or living in a Muslim community is correlated with less risk of wife beating. Christianity seems correlated with less acceptance, albeit more actual wife beating.

Andreas Kotsadam, Sara Cools Violence against women

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Introduction Previous literature and testable hypotheses Data Results from basic regressions A closer look at religion, conflicts, and education. Summary

Summary (2)

Living in a community with more wealth inequality is associated with more violence against women. Attitudes are important predictors of actual wife beating, both at the individual and contextual level. We find no heightened risk of exposure to domestic violence during conflicts. Having more education, or a partner with more education is correlated with less risk of wife beating but we find no effects

  • f education using reforms in three countries, but we can not

reject effects either.

Andreas Kotsadam, Sara Cools Violence against women

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Decomposition of Inequality across the Poor and Population Subgroups for Multidimensional Counting Approach

Sabina Alkire and Suman Seth The Centre for the Study of African Economies 2013, Oxford 19 March 2013

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Introduction

Recent development in multidimensional poverty measurement

– Approaches for Cardinal data (Chakravarty, Mukherjee and Ranade 1998, Tsui 2002, Bourguignon and Chakravarty 2003, Massoumi and Lugo 2008, Alkire and Foster 2011) – Counting Approaches for Binary data (Bossert, Chakravarty and D’Ambrosio 2009, Jayaraj and Subramanian 2009, Alkire and Foster 2011, Rippin 2011)

Consideration of Inequality in poverty measurement has been customary since Sen (1976)

– Three I’s of poverty (Jenkins and Lambert 1997)

2

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Consideration of Inequality in Poverty Analysis

Natural for measures in cardinal approach Not straightforward for measures in counting approach However, inequality can be captured across deprivation counts, if we take ci to be cardinally meaningful

– Deprivation count vector c = (c1, ..., cn); 0 < ci < 1

3

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Consideration of Inequality in Poverty Analysis

Fine tune a poverty measure to capture inequality

– Bossert, Chakravarty and D’Ambrosio 2009

  • Uses symmetric or generalized mean across deprivation counts

– Jayaraj and Subramanian 2009 and Rippin (2011)

  • Weights deprivation counts by themselves (like FGT)

Primarily used for ranking but not suitable for understanding inequality within groups and between groups

4

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What Type of Inequality Matters?

Should the consideration for inequality be based on relative or absolute distances in deprivations?

– ‘Leftist’ vs. ‘rightist’ viewpoint (Kolm 1976)

Example: c1 = (0,0,0.1,0.3) and c2 = (0,0,0.4,1) Which vector is more unequal across the poor (Union)?

– Relative (scaling): c1 has more inequality (Hard to defend) – Absolute (difference): c2 has more inequality

5

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Example: Two States of India (Union)

State A Deprivation Score in Millions Not deprived 5.4 0-0.3 24.1 0.3-0.6 3.0 0.6-0.8 0.2 0.8-0.9

  • 0.9-1
  • Total Poor

27.2 Total Population 32.6

6

State B Deprivation Score in Millions Not deprived 4.8 0-0.3 21.2 0.3-0.6 24.4 0.6-0.8 9.3 0.8-0.9 1.9 0.9-1 1.0 Total Poor 56.8 Total Population 62.6

Which state has more inequality among the poor (Union)?

GE(2): 0.253 Gini: 0.372 GE(2): 0.144 Gini: 0.304

A: Kerala, B: Rajasthan, Year: 2006

from Alkire and Seth (2013)

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Solution?

We argue: ‘distance’ is more appropriate than ‘scaling’ in understanding inequality in counting framework Then

a. Should we create a poverty index that is sensitive to absolute inequality?

  • b. Should we use a separate inequality measure to analyze

inequality among the poor?

One advantage of (b) is that it can be used to analyze inequality within groups and between groups

7

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Which Inequality Measure?

It depends on the additional requirements that we want the measure to satisfy

– Additive Decomposability

  • Overall = Total within-group + between-group

– Total within group = population weighted average of all within groups

  • population share weighted decomposability (Chakravarty 2001)

– Permutation invariance – Zero inequality when everybody has same deprivation score – Increase in inequality due to regressive transfer (Dalton)

8

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Which Inequality Measure?

The only absolute inequality measure that satisfies these properties is variance (its positive multiple, technically)

– (Chakravarty 2001)

V(x) = αΣi(xi – µ(x))2/n where, V(x): positive multiple of variance of vector x µ(x): mean of elements in x n: population size of x α > 0

9

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Revisit the Example

State A Deprivation Score in Millions Not deprived 5.4 0-0.3 24.1 0.3-0.6 3.0 0.6-0.8 0.2 0.8-0.9

  • 0.9-1
  • Total Poor

27.2 Total Population 32.6

10

State B Deprivation Score in Millions Not deprived 4.8 0-0.3 21.2 0.3-0.6 24.4 0.6-0.8 9.3 0.8-0.9 1.9 0.9-1 1.0 Total Poor 56.8 Total Population 62.6 V: 1.30 V: 4.69 α = 100 Delamonica and Minujin (2007) and later Roelan et al. (2010) and Roche (2013) use standard deviation: Not decomposable

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The Natural Decomposition

Total inequality across the poor into between-group and within group components Inequality Decomposition across Castes and Tribes in India (1998)

11

Intensity

  • f Pov

Share

  • f Poor

Inequality (Poor) Total Within group Between Group

caste A_caste poor_shr var_depr_caste_p within_group_p between_group_A

ST 57.0% 12.6% 2.75 SC 55.0% 22.1% 2.67 OBC 52.1% 33.3% 2.38 General 50.6% 32.0% 2.22 India 52.9% 100% 2.49 2.44 0.05

13.9% 23.7% 31.7% 28.6% 2.0% 0% 20% 40% 60% 80% 100% Contribution Between Group General OBC SC ST

Alkire and Seth (2013)

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What Happened Over Time?

12

1999 Intensity (MPI) Share

  • f Poor

Inequality (Poor) Total Within group Between Group

caste A_caste poor_shr var_depr_caste_p within_group_p between_group_A

ST 57.0% 12.6% 2.75 SC 55.0% 22.1% 2.67 OBC 52.1% 33.3% 2.38 General 50.6% 32.0% 2.22 India 52.9% 100% 2.49 2.44 0.05 2006 ST 56.3% 12.9% 2.86 SC 52.6% 22.9% 2.44 OBC 50.8% 42.1% 2.26 General 49.7% 22.0% 2.30 India 51.7% 100% 2.43 2.39 0.04

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What Happened Over Time?

13

1999 Intensity (MPI) Share

  • f Poor

Inequality (Poor) Total Within group Between Group

caste A_caste poor_shr var_depr_caste_p within_group_p between_group_A

ST 57.0% 12.6% 2.75 SC 55.0% 22.1% 2.67 OBC 52.1% 33.3% 2.38 General 50.6% 32.0% 2.22 India 52.9% 100% 2.49 2.44 0.05 2006 ST 56.3% 12.9% 2.86 SC 52.6% 22.9% 2.44 OBC 50.8% 42.1% 2.26 General 49.7% 22.0% 2.30 India 51.7% 100% 2.43 2.39 0.04

Inequality among the poor fell for SC and OBC, but not for ST

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What Happened Over Time?

14

1999 Intensity (MPI) Share

  • f Poor

Inequality (Poor) Total Within group Between Group

caste A_caste poor_shr var_depr_caste_p within_group_p between_group_A

ST 57.0% 12.6% 2.75 SC 55.0% 22.1% 2.67 OBC 52.1% 33.3% 2.38 General 50.6% 32.0% 2.22 India 52.9% 100% 2.49 2.44 0.05 2006 ST 56.3% 12.9% 2.86 SC 52.6% 22.9% 2.44 OBC 50.8% 42.1% 2.26 General 49.7% 22.0% 2.30 India 51.7% 100% 2.43 2.39 0.04

13.9% 23.7% 31.7% 28.6% 2.0% 0% 20% 40% 60% 80% 100% Between Group General OBC SC ST 15.3% 23.0% 39.2% 20.8% 1.7% 0% 20% 40% 60% 80% 100% Between Group General OBC SC ST

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Is This Enough?

Between group inequality among poor is not sufficient for disparity between poverty across groups

– Horizontal Inequality (Stewart 2000) – Sub-national Disparity (Alkire, Roche, Seth 2011)

Example:

c = (0,0,0,6,6,6,6,6,7,7), cA = (0,0,6,6,7) and cB = (0,6,6,6,7) c = (0,0,0,6,6,6,6,6,6,6), cA = (0,0,0,6,6) and cB = (6,6,6,6,6) Overall inequality, within group inequalities, between group inequalities among the poor – all lower in c’s than in c’s Disparity in poverty between subgroups?

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SLIDE 106

Is This Enough?

Disparity in poverty across castes did not go down (Alkire and Seth 2013: poverty cutoff one-third) Also, disparity in poverty is much larger than between group inequality across the poor

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Between Group Inequality (Poor) Disparity in Poverty (Castes) 1999 0.05 0.54 2006 0.04 0.54

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SLIDE 107

Is This Enough?

In fact, when the poverty cut-off is one-fifth:

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Between Group Inequality (Poor) Disparity in Poverty (Castes) 1999 0.10 0.48 2006 0.09 0.51

Contradicting changes

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SLIDE 108

Further Decomposition? How?

The poverty measures are based on the deprivation (censored) count vector c = (c1,...,cn)

– Alkire and Foster (2011): P(c) = (c1 + ... + cn)/n (Adj. HCR) – Bossert et al. (2009): P(c) = [(c1

α + ... + cn α)/n]1/α

– Jayaraj and Subramanian: P(c) = (c1

α + ... + cn α)/n

– Rippin (2011): P(c) = (c1

2 + ... + cn 2)/n

Similar to Thon (1979), Clark, Hemming, and Ulph (1981), Chakravarty (1983), Shorrocks (1995), Xu and Osberg (2001) in single-dimensional context

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SLIDE 109

Further Decomposition

We propose the variance for the vector (censored) c: V(c) Decomposition:

V(c) = V[µ(c1),...,µ(cm)] + H[Σℓ θℓV(aℓ)] + Σℓ νℓ V[µ(aℓ),0]

H: Multidimensional Headcount Ratio θℓ: Share of poor in subgroup ℓ aℓ: Deprivation score vector of the poor in subgroup ℓ νℓ : The population share of subgroup ℓ cℓ : Deprivation score vector of subgroup ℓ for all ℓ = 1, ..., n µ: The average all elements in x

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1 2 3

µ(aℓ)2Hℓ(1-Hℓ)

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SLIDE 110

Example: Change over Time

Year V(c) V[µ(c1),...,µ(cm)] (1) H[Σℓ θℓV(aℓ)] (2) H Σℓ θℓV(aℓ) Σℓ νℓ V[µ(aℓ),0] (3) 1999 8.27 0.54 1.38 56.8% 2.44 6.35 Share 6.5% 16.7% 76.8% 2006 7.86 0.54 1.16 48.5% 2.39 6.16 Share 6.8% 14.7% 78.4%

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SLIDE 111

Conclusion

We discuss the appropriate way of capturing inequality across the poor and proposed variance Variance is invariant to whether we count deprivations or count achievements Emphasize that consideration of between-group inequality is not enough to understand group disparity in poverty

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