ECONOMIC GROWTH CENTER YALE UNIVERSITY P.O. Box 208269 New Haven, Connecticut 06520-8269 CENTER DISCUSSION PAPER NO. 803 WOMEN'S ROLE IN THE AGRICULTURAL HOUSEHOLD: BARGAINING AND HUMAN CAPITAL T. Paul Schultz Yale University January 1999 Note: Center Discussion Papers are preliminary materials circulated to stimulate discussions and critical comments. Prepared for the Agriculture and Resource Economics Handbook, edited by Bruce Gardner and Gordon Rausser. I have benefitted from the comments on an earlier draft by Ayal Kimhi, Agnes Quisumbing, John Strauss, and three anonymous referees. Support for this research came from the Rockefeller Foundation grant for training and research in economics of the family in low income countries. Abstract This paper reviews the methods and empirical findings from economic analyses of women's contribution to social welfare and the determinants of their human capital. To understand better women's roles in agricultural households, three themes have gained prominence in the economics literature. First is the conceptualization of the unified family as coordinator of production and consumption over the lifecycle. Second is the role of separability of production and consumption decisions in the agricultural household that depends on the equivalence of hired and of family labor and the existence of competitive factor markets. Third, is the exploration of individualistic Nash-bargaining or Pareto efficient collective coordination within the family that preserves the distinct preferences of individuals to be expressed in behavioral variation across families. The changing bargaining power of men and women is traced primarily to the increasing investment in women's human capital, in the forms of nutrition, health, schooling, mobility and family planning. This reduction in the gender gap in human capital is shown to be closely related to declines in mortality, fertility, and population growth in most studied populations and may importantly affect the intrahousehold distribution of resources.