Chapter 16

Intrahousehold Inequality

Pierre-André Chiappori*; Costas Meghir    * Department of Economics, Columbia University, NY, USA Department of Economics, Yale University, New Haven, CT, USA

Abstract

Studies of inequality often ignore resource allocation within the household. In doing so they miss an important element of the distribution of welfare that can vary dramatically depending on overall environmental and economic factors. Thus, measures of inequality that ignore intrahousehold allocations are both incomplete and misleading. We discuss determinants of intrahousehold allocation of resources and welfare. We show how the sharing rule, which characterizes the within-household allocations, can be identified from data on household ...

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