1. Structural changes in African households: Female-headed households and Children's educational investments in an imperfect credit market in Africa.
- Author
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Asiedu, Edward, Karimu, Amin, and Iddrisu, Abdul Ganiyu
- Subjects
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BOND market , *WOMEN leaders , *HOUSEHOLDS , *FINANCIAL inclusion , *AFFIRMATIVE action programs , *HOUSEHOLD surveys , *HOUSEKEEPING - Abstract
• The changing structure of households in Africa is challenging the design of micro-level pro-poor policies. • Divorce/separation and widowhood have increased compared to data from 1987/88. • Lower incomes in female-headed households do not lower children's educational investment. • The gender mix of children plays a key role in aggregate household investments for male-headed households, with the financial inclusion of female household heads under 40 years being important for investments in children's education. • Structural changes in female leadership in communities interact with structural changes at the household level. Female headship of households has increased significantly around the world. This paper establishes a link between gender, income, and children's educational investments in an imperfect credit market. We show using a representative household survey from Ghana that, even though there is a positive correlation between income and educational investments, there are expected and unexpected heterogeneities in income and children's educational investments. We find that, whereas income levels for male-headed households with children 6 to 18 years are over 20% higher, female-headed households tend to invest 31% to 38% more on children's education than male-headed households. In imperfect credit markets, higher educational investments could be taking place at the expense of other household outcomes such as food/leisure. Our empirical results show the need for different interventions for different households. We also show how institutional changes that recognize affirmative action can interact with household-level structural changes. [ABSTRACT FROM AUTHOR]
- Published
- 2024
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