‘Arranged’ Marriage, Dowry and Female Literacy in a Transitional Society

We examine the consequences of parental control over choice of wives for sons, for parental incentives to educate daughters, in a dualistic transitional economy, where preferences conflict across generations and the marriage market exhibits competitive dowry payments. Parental control generates persistence of low levels of female literacy, despite economic growth. In steady state equilibrium, the female literacy rate is uniquely determined by the magnitude of male employment in the high wage sector. Income gains for men or women, larger returns to female literacy, lower returns from child labour and tax-subsidy interventions all fail to raise female literacy. Universal female literacy would result, despite dowry, if grooms themselves chose their brides. Outline