A study by a student at Fundação Getulio Vargas’ Brazilian School of Economics and Finance (FGV EPGE) points to inequalities in the distribution of intra-family consumption in Brazil. Based on data from the 2008-2009 Family Budget Survey, Helena Zahar Vaz’s master’s thesis, supervised by Professor Andrea María Flores of FGV EPGE, investigated how resources are allocated between men, women and children within Brazilian nuclear families.

The study reveals major differences in the allocation of resources, influenced by socioeconomic and demographic factors. The main findings are presented below:

• Distribution of resources: In families with children, the study found that men tend to receive a larger share of the resources compared to women and children. The average distribution of resources is 41% for men, 30% for women and 29% for children.
• Socioeconomic impact: Characteristics such as the age and educational level of the parents, as well as the presence of domestic workers, influence the allocation of resources. In particular, women’s share of resources tends to increase when they have completed high school and when there is a domestic worker in the household.
• Families with no children: Among families without children, the average distribution of resources is more balanced, with 53% for men and 47% for women. In this context, factors such as the race of the spouses (white families) and the employment status of the women play an important role in determining resources.

Using a structural model based on the theory of collective models espoused by Dunbar et al. (2013), the study analyzed data on clothing consumption, a privately attributable good, to infer the distribution of resources. This method makes it possible to identify how resources are divided within the household, associating these divisions with the bargaining power of each family member.

The study identified that the geographical location and demographic composition of households also play a significant role in the allocation of resources. For example:

• Northern Brazil: Among families living in Brazil’s North region, women control a lower share of family resources.
• Rural areas: Living in rural areas is associated with a lower allocation of resources for women compared to urban areas.

Furthermore, traditional poverty determination metrics tend to disregard the dynamics of intra-family resource allocation discussed in the study. Applying the estimates of intra-family bargaining power, this research shows that these metrics underestimate the number of women and especially children experiencing extreme poverty in Brazil.

The results of this research suggest the need for public policies aimed at balancing the distribution of resources within families, especially in contexts where socioeconomic factors disadvantage certain members. In this context, investments in education and the promotion of gender equality are essential to mitigate intra-family inequalities.

This study by Helena Zahar Vaz provides an empirical basis for understanding and discussing the internal dynamics of Brazilian families, paving the way for future research into how public policies can positively influence the distribution of resources within households.

To read the full thesis, click here.

To find out more about FGV EPGE, click here.