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Gender, Asset Ownership and Wealth in EcuadorCarmen Diana DeereCenter for Latin American Studies and Food & Resource EconomicsUniversity of Florida

Presentation 1. Why assets important for the study of gender inequalityMethodology The Gender Asset GapThe Gender Wealth GapComparative perspectives: Role of marital & inheritance regimesTentative conclusions

221. Why Assets?Traditional poverty studies: poverty as lack of income or consumption a snapshot of a moment in timeAsset-based poverty studies: focus on accumulation of stock of assets over household life cycleFull definition: physical & financial capital, natural capital, human capital, social capital Our focus on physical & financial assets (wealth) 33Assets: a Key Component of Well-BeingAssetsLivelihood StrategiesFull incomesConsumption & SavingsPhysical & Financial AssetsMeans of production May generate rent, interest, profitHave current use value or provide services Serve as collateral for loansBuffer during emergenciescan be pawned, mortgaged, soldStore of wealthcan be passed on to future generationsProvide economic security & reduce probability of falling into chronic povertyGenerate status and social advantage 5The conceptual problemUntil recently most asset-based poverty studies have focused on householdsButCan we assume that all members have the same access to household assets?Can we assume that all members benefit equally from household assets?66Propositions of Feminist EconomicsHousehold and individual welfare not necessarily the same Individual asset ownership related to:womens well-beingtheir fall-back position: how well off they would be in case of household dissolution (separation, divorce, widowhood; choice whether to marry)their bargaining position within marriageRole in decision-makingInversely related to domestic violenceLess likely to fall into povertyThe empirical problemUp until recently, few household surveys collected individual-level information on assetsGender analysis limited to studying differences between female and male household headsInappropriate unit of analysisHeadship analysis underestimates womens ownership of assets since ignores situation of women in male-headed households (Deere, Alvarado & Twyman 2012)2. Methodology Part of 3-country study (Ecuador, Ghana, India) financed by MDG3 Fund of Dutch Foreign MinistryEcuador study based at FLACSO, Quito6 months of qualitative field work in 3 provinces (focus groups, key informant interviews, asset market study)Nationally representative survey of 2,892 households (EAFF 2010)Truncated: doesnt include the wealthiestEmployed both household and individual-level questionnaires

The respondents the main adult couple in dual-headed households (68.5%) the adult male (6.7%) or female (24.8%) in single-headed households

Setting- Ecuador divided into 3 regions: sierra, coast & Amazon

Setting - Highly urbanizedSetting - Middle income country3. The Gender Asset GapDifferent Measures:Distribution of assets by form of ownership Unit of analysis is the asset Forms of ownership include individual and joint Joint ownership broken down by:CoupleAll household members togetherOther household members (a mother & son, etc.; also includes household member(s) with non-household members)Incidence of asset ownershipUnit of analysis is the asset ownerMeasures % of adult men and women who own the asset

Distribution of Assets by Form of OwnershipIncidence of Ownership by Adults4. The Gender Wealth GapWealth Data Presented:Market valueGross rather than net worthBased on reconciliation of Household and Individual questionnaires + imputed missing values Weighted by sample expansion factors

Distribution of Gross Household Wealth by Sex (US$)

Asset MenWomenTotalPhysical assets38,347,264,99643,826,220,22482,173,485,220%46.753.3100.0Financial assets1,238,095,052488,741,1592,026,836,211%61.138.9100.0Total Gross Wealth39,585,360,04844,614,961,38284,200,321,430%47.053.0100.0Source: EAFF 2010 (rev.)

Distribution of Asset Wealth by SexThe Gendered Composition of WealthDistribution of Household Wealth by Quintiles and SexQuintilesTotalMenWomenI y II 3.23.03.3III8.18.18.2IV20.719.321.9V68.069.666.6Total 100.0100.0100.0 Source: EAFF 2010 (rev.)

What this means in practiceQuintile I or IIQuintile IV or V

Differences by gender:285. Comparative Perspectives on the Gender Wealth Gap

CountryFemale Share of Physical Wealth (%)Ecuador53.0Ghana30.2Karnataka, India19.0Distribution of Principal Residence by Form of OwnershipThe Gender Asset Gap Project Excludes Bangalore

32The Importance of Marital RegimesDetermine the rules governing property during marriageDiffer according to how assets acquired before and during the marriage are treatedTypes:Separation of propertyPartial community propertyFull community property

33Womens Property Rights in EcuadorMarital Regime: partial community property

Assets acquired prior to marriageAssets acquired during the marriageInheritancesIndividual propertyJoint property of the coupleIndividual propertyIf marriage dissolves, split 50-50Womens Property Rights in Ghana & IndiaMarital Regime: separation of property

Assets acquired prior to marriageAssets acquired during the marriageInheritancesIndividual propertyIndividual property Individual propertyIf marriage dissolves, wives have no claim on husbands propertyEcuador: Evidence of Relatively Equitable Inheritance practicesAbout a quarter of sample they and/or siblings had already inherited from parents366. Tentative Conclusions1. Marital & inheritance regimes make a differenceWomen in Ecuador relatively better off because of joint community property in marriage & gender equitable inheritance norms2. Wealth adds a new and important dimension to the study of gender and social inequality3. Differing composition of wealth by quintile suggests new avenues for research and policy interventions to reduce asset poverty and hence household vulnerability

Tentative Conclusions4. Troubling that female-headed households concentrated in poorest wealth quintiles Requires further analysis on whether there BECAUSE lost assets when relationship dissolved or other factors5. Overall, hope to have demonstrated why important to collect individual-level data on asset ownership and wealthThank you!For the country studies & comparative report see:

http://genderassetgap.iimb.ernet.in