Volume 2, Number 1
October 1996

Fairness and Intrahousehold Allocation of Resources

Agnes Quisumbing brought to our attention an interesting journal article from the Journal of Development Economics (1995) titled "Fairness Concepts and the Intrahousehold Allocation of Resources" by Amy Farmer and Jill Tiefenthaler. Drawing on the literature on fair-ness and game theory and some of Patrice Engle's work, it proposes that there are different concepts of fairness that may be operating. Equal division may not be the only fair solution. Agnes mentions that she was particularly impressed by the way the article maps fairness concepts with other concepts that Patrice has found in social psychology. For example, the rule on equal split of resources (the equity rule) is found most often in noncapitalistic cultures. Another type of distribution is the needs-based distribution (the needs rule, based on equity of outcomes). Both the equity rule and the needs rule are common in communally organized cultures. Another type of rule is the contribution rule, or a proportional split (resources split according to the way individuals contribute to the household).

The article argues that policy-makers should not assume that target groups necessarily follow any particular rule. Appealing to people's sense of fairness is an effective means of getting popular support for public programs. The authors warn that if policymakers misread the rules (or think the wrong rules are in operation), the intervention may not be accepted by the target group.