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The Distribution of Well-Being and Income within the Household

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Author Info

  • Jens Bonke

    (Danish National Institute for Social Research, Copenhagen)

  • Martin Browning

    (Institute of Economics, University of Copenhagen)

Abstract

Several papers in the literature on intra-household allocation have suggested that various household ‘outcomes’, such as demands, saving, child health etc., depend on the distribution of income within the household. Implicit in these analyses is that a higher share of household income for one partner leads to a higher welfare for that person. In this paper we consider the issue of the intra-household distribution of welfare directly using a survey measure of self-perceived economic well-being. As a supplement to this we also present an analysis of responses to this question for singles; this allows us to ‘benchmark’ the responses for married individuals. Our data are drawn form the Danish component of the European Community Household Survey for the year 1994. We have three principal findings. First, we do not find any impact of the incomes of other non-related (‘peer-group’) persons on the financial satisfaction of singles. This is in contrast to other recent findings that suggest that agents consider relative incomes when considering their own satisfaction. Second, we find that husbands and wives often report very different levels of financial satisfaction. Finally, the most important correlate with relative satisfaction within the household is found to be relative income. This is a direct confirmation of the previously implicit findings.

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File URL: http://www.econ.ku.dk/cam/wp0910/wp0203/2003-01.pdf/
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Bibliographic Info

Paper provided by University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics in its series CAM Working Papers with number 2003-01.

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Length: 12 pages
Date of creation: Jan 2003
Date of revision:
Handle: RePEc:kud:kuieca:2003_01

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Related research

Keywords: relative income; well-being; happiness; intrahousehold allocation; unitary models;

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Cited by:
  1. repec:hal:cesptp:halshs-00193481 is not listed on IDEAS
  2. Ekaterina Kalugina & Natalia Radtchenko & Catherine Sofer, 2008. "Une analyse du partage intra familial du revenu à partir de données subjectives," Économie et Prévision, Programme National Persée, vol. 186(5), pages 101-116.
  3. Ekaterina Kalugina & Natalia Radtchenko & Catherine Sofer, 2006. "How do spouses share their full income ? Identification of the sharing rule using self-reported income," Cahiers de la Maison des Sciences Economiques bla06012, Université Panthéon-Sorbonne (Paris 1).
  4. J. Bonke & M. Deding & M. Lausten, 2006. "Time and Money: Substitutes in Real Terms and Complements in Satisfactions," Economics Working Paper Archive wp_451, Levy Economics Institute.
  5. Molina, José Alberto & Navarro Paniagua, Maria & Walker, Ian, 2007. "Mums and Their Sons, Dads and Their Daughters: Panel Data Evidence of Interdependent Marginal Utilities across 14 EU Countries," IZA Discussion Papers 2734, Institute for the Study of Labor (IZA).
  6. Creedy, John, 2013. "Alternative Distributions for Inequality and Poverty Comparisons," Working Paper Series 2851, Victoria University of Wellington, Chair in Public Finance.
  7. repec:hal:journl:halshs-00368422 is not listed on IDEAS
  8. Inmaculada García & José Alberto Molina Chueca & María Navarro, 2006. "How satisfied are spouses with their Leisure Time?. Evidence from Europe," Documentos de Trabajo dt2006-05, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.
  9. Bonke, Jens, 2008. "Income distribution and financial satisfaction between spouses in Europe," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(6), pages 2291-2303, December.
  10. repec:hal:journl:halshs-00111159 is not listed on IDEAS
  11. repec:hal:cesptp:hal-00687277 is not listed on IDEAS
  12. Perez Truglia, Ricardo Nicolas & Bottan, Nicolas Luis, 2008. "Deconstructing the Hedonic Treadmill: Is Happiness Autoregressive?," MPRA Paper 20340, University Library of Munich, Germany.
  13. Jens Bonke & Mette Deding & Mette Lausten, 2009. "Time and Money," Journal of Happiness Studies, Springer, vol. 10(2), pages 113-131, April.
  14. R. Alessie & Thomas F. Crossley & Vincent Hildebrand, 2006. "Estimating a collective household model with survey data on financial satisfaction," Working Papers 06-07, Utrecht School of Economics.
  15. Labeaga, José M. & Molina, José Alberto & Navarro Paniagua, Maria, 2007. "Income Satisfaction and Deprivation in Spain," IZA Discussion Papers 2702, Institute for the Study of Labor (IZA).
  16. Ekaterina Kalugina & Catherine Sofer & Natalia Radtchenko, 2009. "Intra-household inequality in transitional Russia," Review of Economics of the Household, Springer, vol. 7(4), pages 447-471, December.

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