Intra-household Welfare Distribution by a New Method of the Sharing Rule Identification

The paper proposes a new application of the collective model of household behaviourto the analysis of intra-household inequality using the answers to the questions on subjectivewelfare.The collective approach attributes to each household member distinct preferences andassumes that household decisions are Pareto efficient. The individual choices are guided bythe sharing rule describing the intra-household decision making. So far, most empiricalstudies based on the collective approach have been restricted to the identification of thesharing rule up to a constant.This study prolongs the work of Kalugina, Radtchenko, Sofer (2007) and proposes anew method of the sharing rule identification using the information on individual welfaresatisfaction as an additional source of analysis. In spite of different sources of identificationused in the two analyses and substantial differences of the econometric models adoptedaccording to the identification sources, the results of the sharing rule estimation arequalitatively and quantitatively similar to those obtained in Kalugina, Radtchenko, Sofer(2007).