Parental Choice and Gender Balance

We examine the implications of parental choice regarding the gender of their child in a context where boys are valued more than girls. In the absence of a bride price system, parental choice may reduce gender bias, but has an adverse effect on welfare since it results in a sex ratio that is biased against girls. Bride prices can ensure efficient outcomes with a balanced sex ratio if markets are Walrasian. However, if the marriage market is subject to frictions, the equilibrium sex ratio will be unbalanced and inefficient.

For more information, contact Philipp Kircher.