OLS Estimation of the Intra-Household Distribution of Expenditure

Lechene, Valérie, Krishna Pendakur and Alexander Wolf

No 15955, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: We develop a method to estimate resource shares — the fraction of total household expenditure allocated to each household member — using OLS estimation of Engel curves. The method reframes the nonlinear model of Dunbar, Lewbel and Pendakur (2013), extended to allow single parent households, scale economies in assignable goods, complementarities between non assignable goods, and supplemented by a linear identification test. We apply the model to data from 12 countries, and investigate resource shares, gender gaps, and poverty. We reject equal sharing, and find large gender gaps in resource shares, and consequently in poverty rates, in some countries.

Keywords: Collective households; Resource shares; Intra-household inequality; Poverty (search for similar items in EconPapers)
JEL-codes: D13 D63 I32 (search for similar items in EconPapers)
Date: 2021-03
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Citations: View citations in EconPapers (2)

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Related works:
Working Paper: OLS estimation of the intra-household distribution of expenditure (2021)
Working Paper: OLS estimation of the intra-household distribution of expenditure (2020)
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