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Abstract

This study investigates the impact of women’s bargaining power within households on investments in children. Specifically, it explores how disparities in age, education, income, property ownership, and hukou type between wives and husbands within Chinese households affect the allocation of resources towards children’s welfare. Employing Principal Compo- nent Analysis (PCA) to quantify this bargaining power, the research provides a novel and comprehensive examination of the factors influencing bargaining dynamics in China. Find- ings indicate that households invest significantly more in children when women possess greater bargaining power. A key result shows that an increase in the woman’s bargaining power index is associated with a substantial rise in educational expenditures for children. This study underscores the importance of gender dynamics in household decision-making processes and their implications for child welfare in China.

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