Selling daughters: age of marriage, income shocks and bride price tradition⇤ Lucia Corno† Alessandra Voena ‡ June 2015 PRELIMINARY Abstract When markets are incomplete, cultural norms may play a greater role in shaping economic behavior. In this paper, we explore whether the custom of bride price – a transfer made by the groom to the bride’s family at marriage – increases the probability of teenage marriages. We develop a simple model in which households are exposed to income shocks and have no access to credit markets and show that girls have a higher probability of marrying early when their parents have higher marginal utility of consumption because of adverse income shocks. We test the prediction of the model by exploiting variation in rainfall shocks over a woman’s life cycle. Using a survey dataset from Tan- zania, we find that adverse shocks during teenage years increase the ⇤We thank Veronica Guerrieri, Eliana La Ferrara and participants to the COSME work- shop for helpful comments, Helene Bie Lilleor and Sofya Krutikova for useful discussion on the Kagera Health Development Survey and Kalle Hirvonen for the clarification re- garding weather data. Simone Lenzu and Jorge Rodriguez provided outstanding research assistance. Data obtained from the NASA Langley Research Center are greatefully ac- knowledged. This research was partly funded by a Research Grant from the Social Sciences Division at the University of Chicago. †Queen Mary, University of London and IFS. Email:
[email protected] ‡The University of Chicago and NBER. Email:
[email protected] 1 probability of early marriages, particularly in the sub-sample of re- spondents who report a bride price payment at marriage.