Types of help

Two papers have surfaced recently on the effectiveness of aid. I use the term ‘aid’ loosely as one type of aid is intended to help the economy and another is intended to lift the fortunes of women running microenterprises. The stimulus paper tells us that the one-time stimulus payments of 2008 boosted spending by more than the reduction in withholding 2009. The microenterprise paper tells us that in-kind grants did more to increase profits for small businesses than cash grants. Both papers, however, tell essentially the same story, that how people are given money affects the way that they use it, and thus how useful it will be in terms of attaining certain outcomes.

A dollar is not just a dollar, particularly when there is a specific policy goal in mind.


Same-sex marriage makes me better off

I laughed out loud a bit reading this article on how same-sex marriage is actually good for straight women. With only the title to guide me, all I could come up with in terms of expectations was that there would be some long rant about how if gay men can marry, maybe that will reduce the stigma associated with being gay which means that fewer gay men will marry straight women, or that women who had foregone marriage in solidarity would now be able to get married. Let’s say I was pleasantly surprised when the article rather took on equality within marriages as opposed to making some tenuous, crazy link (what was I thinking?!).

Key (first time I laughed out loud) quote:

As same-sex couples marry, things get better for us, too. Remember the scary (and since-discredited) stories about how a woman is more likely to be killed by a terrorist than to find a husband after she turns 40? Or the one about how suitors are fleeing from Maureen Dowd because they’re afraid of her Pulitzer Prize? The poll showing evangelical women in patriarchal marriages are happier than Sarah Jessica Parker? Well, same-sex marriage shows that people can make long-term, loving, sexual bonds with each other even where neither is naturally inclined to tell the other what to do.

It’s a cheeky way of putting it, of course, and I’m railing inside against the insinuation that women harp on their partners, but I like how the author takes a historical perspective on women’s rights within marriage. She starts with how marriage stripped a woman of civic personhood and describes various efforts to maintain women in that lesser role until it evolved to where we are today.

As an economist, of course, I think she skipped one of the most salient examples of justifying inequality in marriage. The man who is credited with essentially founding family economics, Gary Becker, argued, and rather convincingly, that gains from marriage, in an economic sense, at least, came from specialization. Men earned higher salaries in the market than women did, so men should work for pay in the market and women should stay at home. It’s a lesson in comparative advantage taken from trade theory (one of my least favorite lessons in teaching principles). If you’re relatively better at something than your partner, you should each specialize in one thing and then trade to maximize gains. This makes your feasible consumption higher than if you tried to do both kinds of work yourself. Interestingly, it doesn’t really matter if you’re technically better at both things, you can still gain by agreeing to specialize and trade. Becker’s work doesn’t rule out that women might actually be better at both market work and home work, but since men did (and still do) earn higher wages than women, they’re going to be relatively better at bringing home the bacon than doing laundry and cleaning.

The scary part is that at face value, it almost seems reasonable. It’s only in reading the work carefully that it smacks of machismo. Becker’s ideas echo (although his work precedes some of it) several other scholars (of sorts) and others mentioned in the article whose work was used to justify keeping women from working and at home, cooking, cleaning and raising the kids. A lot of scholarly work has, unwittingly or not, served the interests of those desiring to maintain unequal marriages.

So, will same-sex marriage make us all more equal? It’s an interesting hypothesis, and one that might even be testable, but I’m not sure we have all the information yet. Legalizing same-sex marriage doesn’t mean same-sex marriage ‘works’ in the sense the author is proposing and we certainly don’t have the same kind of happiness data on same-sex marriage, yet. It’s also problematic that our most recent census won’t count any of these people as married, but the next one will (all these problems again of how we define family). However, there is hope. The process of state-by-state legalization of same-sex marriage means that we have something of a natural experiment. Though not randomly assigned (although you might argue that Iowa’s same-sex marriage law was more random–put in place by the judiciary–than New York’s–put in place by the legislature), the different timing of these laws means that we can measure how other things change within the states. I imagine, as the data become fuller, that lots of papers will come out about how same-sex marriage influences gay ‘brain drain’, women’s wages, etc. It’s exciting to think about.

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