The early work on intrahousehold allocation alerted researchers and policymakers to the possible policy failures that could arise from neglect of intrahousehold allocation issues (Haddad, Hoddinott, and Alderman 1997). Conversely, what are the policy gains from paying attention to these issues? The new research on intrahousehold issues provides evidence that policies and interventions can be made more effective when differential rights, resources, and responsibilities within the household are explicitly considered.

The bargaining power of men and women crucially shapes the resource allocation decisions households make (Quisumbing and de la Brière 2000). Husbands and wives often use their bargaining power to express different priorities about how resources should be allocated. Understanding these differences and their effects is critical if policymakers are to improve livelihoods. Increasing the bargaining power of one gender group rather than another can mean the difference between policy failure and policy success.

Micronutrient malnutrition is a serious problem in developing countries. It is well established that micronutrient requirements are greater for women and children because of their special needs for reproduction and growth. Unfortunately, however, women and children suffer most from micronutrient deficiencies. Micronutrient deficiency impairs the cognitive development of young children, retards physical growth, increases child mortality, and contributes to the problem of maternal death during childbirth.

Many decisions that affect the well-being of individuals are made within families or households. The processes by which resources are allocated among individuals and the outcomes of those processes are commonly referred to as “intrahousehold resource allocation.” Since the early 1990s a growing literature has paid increasing attention to the role that intrahousehold resource allocation plays in affecting the outcome of development policy (see Strauss and Thomas 1995; Behrman 1997; Haddad, Hoddinott, and Alderman 1997 for reviews).

Policymakers have many options for improving women’s status relative to men’s. The most appropriate set of actions in a given situation will naturally be specific to that context. This chapter outlines some policy actions that have proven successful, as summarized in Table 26.1, and gives some examples of their implementation.

Agrowing body of literature suggests that men and women allocate resources under their control in systematically different ways.

Traditional models of household economic behavior have portrayed households as unified entities. They assume that household members agree about decisions and share resources in the most equitable way possible. More recently, however, economists have come to view households as domains of difference, where multiple decisionmakers may have different preferences and, in many cases, control separate sets of resources. This new approach has greatly improved understanding of household resource allocation behavior.

Much has been written about the importance of gender issues in designing and implementing agricultural evelopment projects (Cloud 1983; Alderman et al. 1994; Quisumbing et al. 1998). Part of this literature has been motivated by the important role that women play in food production, particularly in Sub-Saharan Africa (Boserup 1970; Dixon 1982; Gladwin and Macmillan 1989), as well as in the management of natural resources (Meinzen-Dick et al. 1997).

Among financial institutions serving poor households around the world, microfinance programs have emerged as important players. These programs typically make small loans—sometimes as small as US$50 to US$100 and sometimes as large as several thousand dollars-to households lacking access to formal-sector banks (see, for example, Lapenu and Zeller 2001). One important achievement of the microfinance movement has been its relative success in deliberately reaching out to poor women living in diverse socioeconomic environments.

Since 1997 Mexico has provided poor families with cash benefits linked to children’s school attendance and regular clinic attendance, as well as in-kind health benefits and nutritional supplements, through the Programa Nacional de Educación, Salud y Alimentación (PROGRESA). Unlike previous social programs in Mexico, this nationwide antipoverty program targets transfers to the mother of the family.

This chapter challenges one of the main tenets of agricultural economics—that households behave as though they are single individuals, with production factors allocated efficiently between men and women. In many contexts this is a convenient and innocuous assumption. It can be quite restrictive, however, when investigating the causes and welfare consequences of gender differences in agriculture.