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About Annual Meeting
Scholars have long been interested in the effects of women's economic power on household and relationship dynamics. This project intends to contribute to this literature by providing causal evidence on the effect of increasing women's income on (i)intra-household decision making and the (ii)division of domestic labor. For this, I use the experimental design of the Progresa CCT program in Mexico, which allocates a cash subsidy directly to women, who are the responsible of fulfilling programs conditions. In particular, this project tests two well established hypotheses about women's income and household dynamics: Exchange-bargaining and gender deviance theories. Overall, the short-term impact of Progresa on household dynamics suggest there is causal evidence to support the exchange-bargaining hypothesis. Findings indicate that a rise in women's earnings significantly increased their probability of administering their own cash and going out alone, while reducing women's housework.