Economics at your fingertips  

Intra-Household Wealth and Welfare Inequality in the US: Estimations from a Collective Model of Labor Supply

José Alberto Molina (), J. Ignacio Gimenez-Nadal () and Jorge Velilla ()
Additional contact information
J. Ignacio Gimenez-Nadal: University of Zaragoza

Authors registered in the RePEc Author Service: Jose Ignacio Gimenez-Nadal ()

No 11707, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper analyzes the intra-household distribution of wealth and welfare in the United States, within a theoretical framework based on a collective model of labor supply, where household decisions are Pareto efficient, and spouses negotiate a sharing rule for non-labor income. Using the American Time Use Survey for the years 2003 to 2015, estimates show a positive correlation between individual wages and labor supply, while cross-wages go in the opposite direction. Additionally, we find that wives tend to be more altruistic in comparison to their husbands regarding the intra-household allocation of income, which leads to wealth inequalities. However, the intra-household processes appear to be efficient in terms of welfare, as increases in any source of household income are associated with decreases in intra-household inequality, as measured by the spouses' estimated indirect utility. Our results shed light on the spouses' wealth shares and the sharing rule guiding the individual allocations, which may be important in the design of policies aimed at alleviating poverty.

Keywords: collective model; labor supply; sharing rule; intra-household inequality; welfare; American Time Use Survey (search for similar items in EconPapers)
JEL-codes: D15 J22 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2018-07
New Economics Papers: this item is included in nep-lma and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link) (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().

Page updated 2020-11-29
Handle: RePEc:iza:izadps:dp11707