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How Do Spouses Share their Full Income ? Identification of the Sharing Rule Using Self-Reported Income

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  • Ekaterina Kalugina

    ()
    (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne, HCE - Haut Collège d'Economie de Moscou)

  • Natalia Radtchenko

    ()
    (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne)

  • Catherine Sofer

    ()
    (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne)

Abstract

The paper applies the collective model to the analysis of intra-household inequality using self-reported income scales. Starting from a collective model including household production, our key assumption is that the income level that household members report corresponds to their true income sharing. Using Russian data (Rounds V to VIII of the Russian Longitudinal Monitoring Survey), we apply the results for couples who report the same level of income to identify the sharing rule for the whole sample. This method allows us to obtain not only the derivatives, but also the sharing rule itself. From simulations for an average couple with one child living in the Urals, we find that a full income share of 45% is allocated to the wife.

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Bibliographic Info

Paper provided by HAL in its series Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) with number halshs-00111159.

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Date of creation: Feb 2006
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Handle: RePEc:hal:cesptp:halshs-00111159

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Related research

Keywords: Collective model; within-household income comparisons; subjective data; Russia; sharing rule.;

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References

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  1. Benoit Rapoport & Catherine Sofer & Anne Solaz, 2011. "Household Production in a Collective Model: Some New Results," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers), HAL hal-00687274, HAL.
  2. Ada Ferrer-i-Carbonell & Paul Frijters, 2002. "How important is Methodology for the Estimates of the Determinants of Happiness?," Tinbergen Institute Discussion Papers, Tinbergen Institute 02-024/3, Tinbergen Institute.
  3. Chiappori, Pierre-Andre, 1988. "Rational Household Labor Supply," Econometrica, Econometric Society, Econometric Society, vol. 56(1), pages 63-90, January.
  4. Senik, Claudia, 2004. "When information dominates comparison: Learning from Russian subjective panel data," Journal of Public Economics, Elsevier, Elsevier, vol. 88(9-10), pages 2099-2123, August.
  5. Chiappori, Pierre-André & Fortin, Bernard & Lacroix, Guy, 2001. "Marriage Market, Divorce Legislation and Household Labor Supply," Cahiers de recherche, Université Laval - Département d'économique 0103, Université Laval - Département d'économique.
  6. Browning, M. & Chiappori, P.A., 1994. "Efficient Intra-Household allocations: A General Characterization and Empirical Tests," DELTA Working Papers, DELTA (Ecole normale supérieure) 94-16, DELTA (Ecole normale supérieure).
  7. Apps, P.F. & Rees, R., 1996. "Collective Labor Supply and Household Production," Papers, Australian National University - Department of Economics 301, Australian National University - Department of Economics.
  8. Clark, Andrew E & Oswald, Andrew J, 1994. "Unhappiness and Unemployment," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 104(424), pages 648-59, May.
  9. Martin Browning & Pierre-Andre Chiappori, 2006. "Estimating Consumption Economies of Scale, Adult Equivalence Scales, and Household Bargaining Power," Economics Series Working Papers, University of Oxford, Department of Economics 289, University of Oxford, Department of Economics.
  10. Chiappori, P.A., 1989. "Collective Labour Supply and Welfare," DELTA Working Papers, DELTA (Ecole normale supérieure) 89-07, DELTA (Ecole normale supérieure).
  11. Yew-Kwang Ng, 1996. "Happiness surveys: Some comparability issues and an exploratory survey based on just perceivable increments," Social Indicators Research, Springer, Springer, vol. 38(1), pages 1-27, May.
  12. Winkelmann, Liliana & Winkelmann, Rainer, 1998. "Why Are the Unemployed So Unhappy? Evidence from Panel Data," Economica, London School of Economics and Political Science, London School of Economics and Political Science, vol. 65(257), pages 1-15, February.
  13. Ravallion, Martin & Lokshin, Michael, 2002. "Self-rated economic welfare in Russia," European Economic Review, Elsevier, Elsevier, vol. 46(8), pages 1453-1473, September.
  14. Chiappori, P.A., 1994. "Introducing Household Production in Collective Models of Labour Suply," DELTA Working Papers, DELTA (Ecole normale supérieure) 94-18, DELTA (Ecole normale supérieure).
  15. François Bourguignon & Maria Concetta Chiuri, 2005. "Labor market time and home production: A new test for collective models of intra- household allocation," CSEF Working Papers, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy 131, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
  16. Jens Bonke & Martin Browning, 2003. "The Distribution of Well-Being and Income within the Household," CAM Working Papers, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics 2003-01, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
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Citations

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Cited by:
  1. Lacroix, Guy & Radtchenko, Natalia, 2008. "The Changing Intra-Household Resource Allocation in Russia," IZA Discussion Papers 3733, Institute for the Study of Labor (IZA).
  2. Natalia Radtchenko, 2009. "Identifying Intra-household Welfare Distribution," Documents de recherche, Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne 09-04, Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne.
  3. Susanne Elsas, 2013. "Pooling and Sharing Income within Households: A Satisfaction Approach," SOEPpapers on Multidisciplinary Panel Data Research 587, DIW Berlin, The German Socio-Economic Panel (SOEP).
  4. repec:hal:journl:halshs-00461494 is not listed on IDEAS
  5. Ekaterina Kalugina & Catherine Sofer & Natalia Radtchenko, 2009. "Intra-household inequality in transitional Russia," Review of Economics of the Household, Springer, Springer, vol. 7(4), pages 447-471, December.

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