Household Income Allocation: Effects of Gender on Demand and Expenditure Patters in South Africa

Abstract

This study investigates the effects of gender of household head on demand and expenditure patterns in South Africa. Effects of household income on household commodity expenditure shares and child nutritional status by the gender of household head are evaluated. Available literature on intra-household resource allocation, indicates an ongoing debate about whether income in the hands of women is a better investment as opposed to income under the control of men. Investment at household level refers to the broadening of opportunities for increased household welfare through education, health and socio-economic services to members. A demand model has been used to aggregate individual demands given an aggregate income constraint on the household. A collective model was used to conceptualize household preferences assuming household members have different preferences. Empirical results show that female headed households generally do better in influencing child nutritional status but it is not clear which gender of household head has a bigger impact on the demand for household commodities.