Intra-Household Inequality and Overall Inequality

Ravi Kanbur

No 11719, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Assessing the specific contribution of intra-household inequality to standard measures of overall inequality and poverty is an underdeveloped area of research and policy analysis. However, intra-household inequality is clearly important. It is argued in this paper that neglecting intra-household inequality could lead to (i) an understatement of inequality and an overstatement of the impact of growth on poverty reduction; (ii) a mis-statement of the potential impact of minimum wage policies on poverty; (iii) mis-design of transfer policies to reduce inequality and poverty. Any discussion of inequality in the welfare state cannot afford to ignore intra-household inequality.

Date: 2016-12
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