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About this brief
The impact of a gender and business training on income hiding: An experimental study in Vietnam
Brief about:
Journal Article (2018)
Written by:
Other researchers:
An experiment within an experiment. A randomised controlled trial determines whether women received training or not, both groups of women played lab games for real money, which were used to measure the extent to which they would hide income from their husbands.
These actions reflect an income effect. After participating in the business training, women on average earn a higher income from their business. Husbands who are aware of the income increase try to “tax” some of this extra income for household purposes. In response, women try to hide part of their income, so that they can spend it privately.
This interpretation follows a former mathematical model which predicts these results, however the findings rest on assumptions as it is not possible to measure all interactions.
Key findings
- In Vietnam, we documented extremely high degrees of honesty/transparency among spousal partners.
- Across the board, people are honest and are willing to incur individual costs so they can maintain transparency with their partners.
- The business and gender training intervention reduces honesty, women who participated in the training were less likely to be honest and more likely to hide part of their income from their husband.What it means
These women had to be offered a greater sum to reveal their income earned in an experimental game.
Proposed action
- It is good to invite husbands to training interventions to demystify the process
Husbands also have useful content contributions, they can provide information and networks, which can improve the working of interventions. However, it is good not to have husbands involved in specific sessions involving the business of their partner. Women prefer to keep some information (e.g. about their income) private.
- There is an ambiguity that arises with empowerment, which can appear in various contexts, when husbands have also have a say in decisions
It is important to consider how this ambiguity presents itself. In this case it is whether empowerment encourages or discourages income hiding.
- When trying to measure income, for example to indicate which households qualify for receiving a treatment, be aware of the fact that sizeable shares of income may be hidden from view so that you may underestimate true household income
- This research can also be applied to the domain of microfinance
Microfinance organisations often offer trainings at the exclusion of husbands, this has sometimes resulted in intrahousehold friction/tensions. Consequently, there has been a call to include husbands but this research highlights the need to be careful in its organisation. Inviting men so that they can access microfinance independently can be a means to reduce tensions, but inviting men and women together and revealing information about the workings/profitability of each partner, then you can put information on the table which might have been preferred to keep secret, thus altering power dynamics.
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Acknowledgements
Thank you to ASEAN
These insights were made available thanks to the support of ASEAN, who are committed to the dissemination of knowledge for all.
Special thanks to Arianne Zajac for preparation assistance
We would like to extend a special thank you to Arianne Zajac, for their invaluable contribution in assisting the preparation of this research summary.
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The impact of a gender and business training on income hiding: An experimental study in Vietnam
Cite this brief: Bulte, Erwin. 'The impact of a gender and business training on income hiding: An experimental study in Vietnam'. Acume. https://www.acume.org/r/the-impact-of-a-gender-and-business-training-on-income-hiding-an-experimental-study-in-vietnam/
Brief created by: Professor Erwin Bulte | Year brief made: 2022
Original research:
- R. L., Bulte, E., & A. W., ‘The impact of a gender and business training on income hiding: An experimental study in Vietnam’ 148 (pp. 241–259) https://doi.org/10.1016/j.jebo.2018.02.020. – https://www.sciencedirect.com/science/article/pii/S0167268118300532?via%3Dihub#gs0001
Research brief:
An experiment within an experiment. A randomised controlled trial determines whether women received training or not, both groups of women played lab games for real money, which were used to measure the extent to which they would hide income from their husbands.
These actions reflect an income effect. After participating in the business training, women on average earn a higher income from their business. Husbands who are aware of the income increase try to “tax” some of this extra income for household purposes. In response, women try to hide part of their income, so that they can spend it privately.
This interpretation follows a former mathematical model which predicts these results, however the findings rest on assumptions as it is not possible to measure all interactions.
Findings:
In Vietnam, we documented extremely high degrees of honesty/transparency among spousal partners.
Across the board, people are honest and are willing to incur individual costs so they can maintain transparency with their partners.
The business and gender training intervention reduces honesty, women who participated in the training were less likely to be honest and more likely to hide part of their income from their husband.
These women had to be offered a greater sum to reveal their income earned in an experimental game.
Advice:
It is good to invite husbands to training interventions to demystify the process
- Husbands also have useful content contributions, they can provide information and networks, which can improve the working of interventions. However, it is good not to have husbands involved in specific sessions involving the business of their partner. Women prefer to keep some information (e.g. about their income) private.
There is an ambiguity that arises with empowerment, which can appear in various contexts, when husbands have also have a say in decisions
- It is important to consider how this ambiguity presents itself. In this case it is whether empowerment encourages or discourages income hiding.
When trying to measure income, for example to indicate which households qualify for receiving a treatment, be aware of the fact that sizeable shares of income may be hidden from view so that you may underestimate true household income
This research can also be applied to the domain of microfinance
- Microfinance organisations often offer trainings at the exclusion of husbands, this has sometimes resulted in intrahousehold friction/tensions. Consequently, there has been a call to include husbands but this research highlights the need to be careful in its organisation. Inviting men so that they can access microfinance independently can be a means to reduce tensions, but inviting men and women together and revealing information about the workings/profitability of each partner, then you can put information on the table which might have been preferred to keep secret, thus altering power dynamics.