transactions that are wrapped up in the exchange of clothing have an opportunity cost for individuals who have arranged the exchange.<sup>16</sup> Social reproduction includes investments (and associated returns) in human capabilities through education, health care, and the building of social capital. These investments raise future productive capacity while creating a virtuous cycle within social reproduction itself – the more educated, healthy, and capable the younger generations are, and the more positive social connections they benefit from, the generation to follow them will benefit as well. Social reproduction is therefore not only a necessary input into economic production but is also a public good, encouraging positive externalities and limiting negative externalities of current and future economic systems. In short, the work of social reproduction is vital for the paid economy to function and an important criterion for fiscal policy to consider.

To the extent that women participate more and men less in unpaid social reproduction activities – which is the case in most countries – fiscal policy supporting social reproduction activities may also be enhancing the productivity of women across all of their activities. For example, public expenditure on roads, transport, and energy services directly supports social reproduction by reducing the amount of time that women spend in unpaid work.

Cash transfers and other fiscal expenditures that enhance the bargaining power of women caretakers can affect the amount and type of expenditures, savings, and other investments made by those women. However, in general, empirical studies are inconclusive regarding gender differentials in expenditures and investments. Some studies find that women tend to spend a higher proportion of income under their control on goods that enhance the well-being and capabilities of children, such as food, education, and health care (Thomas 1993; Haddad and others 1997; Quisumbing and Maluccio 2000; Armand and others 2016). However, Benhassine and others (2015) found that, in Morocco, the gender of the unconditional cash transfer recipient has no differential impact; while Akresh, De Walque, and Kazianga (2016) found better outcomes among children (relative to regional macroeco- nomic conditions) when cash transfers were given to fathers rather than to mothers in Burkina Faso.

Public benefits directly supporting women may also indirectly support the unpaid social reproduction activities that women are often responsible for. However, indirect taxes (such as a value-added tax or an excise tax) on expenditures that women are typically responsible for may both directly reduce the bargaining power of women and indirectly discourage the social reproduction activities in which women are typically involved.

Finally, in many developing countries, women are denied the right to own and inherit a property or other productive assets. Men hold the majority of land and housing titles, and social norms may dictate that businesses are owned by male family members, and women may supply labor to them. Nonetheless, in recent decades, women have made strides in some areas of property ownership, most notably in entrepreneurship and business development. Taxes and transfers can promote or discourage female entrepreneurship and land ownership.

> 16. Neither the inputs to this transaction, the transaction itself, nor the results of the transaction are visible in a typical household survey.

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