Intrahousehold Power in Russia and the Maternal Capital Law

Natalya Y. Shelkova – Ph.D., Associate Professor, Economics Department, Guilford College, Greensboro, USA. Email: shelkovany@guilford.edu It has been documented that the introduction of market economy institutions in Russia has disadvantaged Russian women, weakening their economic position and their power within the family. This paper investigates whether the introduction of the 2007 the Maternal Capital Law, which aims to promote fertility by granting Russian women a non-cash subsidy for having more than one child, affected the intrahousehold balance of power in Russian families. In order to investigate this hypothesis, the paper looks at changes in the ratio of family expenditure on children to spending on alcohol and tobacco before and after passing of the law. Data from the Russia Longitudinal Monitoring Survey (RLMS-HSE), 2002 to 2010, is used. The estimated regression models employ the difference-in-difference methodology and are based on Lundberg, Pollack and Wales, who researched a similar policy shift in the UK in 1970s. The results demonstrate that the year 2008 was a critical turning point: starting with 2008 the ratio of family expenditure on children to spending on alcohol and tobacco increased for families with two or more children (the results are statistically significant). After 2007, on average, expenditure on children increased by fifty-nine roubles per every ruble of alcohol and tobacco expenditures (mesearured in 2002 roubles), nearly doubling. The effect in families with a husband not holding a college degree was shown to be larger and more siginifcant than in families with college-educated husbands. It is concluded that the 2007 Law has had a positive impact on the bargaining power of Russian women.