NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Extended Families and Child Well-being

Daniel LaFave, Duncan Thomas

NBER Working Paper No. 20702
Issued in November 2014
NBER Program(s):   DEV

Whereas studies have established the intra-household distribution of resources affects allocation decisions, little is known about how these decisions are affected by the distribution of resources among co-resident and non co-resident extended family members. Drawing on theoretical models of collective decision-making, we use extremely rich data from Indonesia to establish that child health- and education-related human capital outcomes are affected by resources of extended family members who co-reside with the child and those who are not co-resident. Extended family members are not completely altruistic but their allocation decisions are apparently co-ordinated in a way that is consistent with Pareto efficiency.

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Document Object Identifier (DOI): 10.3386/w20702

Published: "Extended families and child development" Journal of Development Economics, 126:52-65, 2017 citation courtesy of

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