Intra-Household Welfare Inequality and Household Public Goods

Pierre Chiappori, Costas Meghir and Yoko Okuyama

No 32645, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We develop a money metric welfare index for individuals within households, allowing for public goods, work, and heterogeneous preferences for men and women. Using Japanese data, we estimate a collective model of labor supply, private consumption, and expenditures on children and other public goods. We find that women have stronger preference for spending on children and other public goods than men. Within-household inequality is larger than between-household inequality, but has been declining across cohorts, reflecting improvements in women’s position. This is driven by the increase in women’ college graduation, improvement in their relative wages, and the increase in childcare availability.

JEL-codes: H31 H41 J12 J13 J16 J22 (search for similar items in EconPapers)
Date: 2024-07
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