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How do spouses share their full income ? Identification of the sharing rule using self-reported income

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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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File URL: ftp://mse.univ-paris1.fr/pub/mse/cahiers2006/Bla06012.pdf
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Bibliographic Info

Paper provided by Université Panthéon-Sorbonne (Paris 1) in its series Cahiers de la Maison des Sciences Economiques with number bla06012.

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Length: 36 pages
Date of creation: Feb 2006
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Handle: RePEc:mse:wpsorb:bla06012

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

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  1. Martin Browning & P.A. Chiappori, 1996. "Efficient Intra-Household Allocations - A General Characterization and Empirical Tests," Discussion Papers 96-10, University of Copenhagen. Department of Economics.
  2. Chiappori, Pierre-Andre, 1997. "Introducing Household Production in Collective Models of Labor Supply," Journal of Political Economy, University of Chicago Press, vol. 105(1), pages 191-209, February.
  3. Martin Browning & Pierre-André Chiappori & Arthur Lewbel, . "Estimating Consumption Economies of Scale, Adult Equivalence Scales, and Household Bargaining Power," CAM Working Papers 2003-12, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics, revised Dec 2003.
  4. Apps, P.F. & Rees, R., 1996. "Collective Labor Supply and Household Production," Papers 301, Australian National University - Department of Economics.
  5. Chiappori, Pierre-Andre, 1992. "Collective Labor Supply and Welfare," Journal of Political Economy, University of Chicago Press, vol. 100(3), pages 437-67, June.
  6. Ravallion, Martin & Lokshin, Michael, 2002. "Self-rated economic welfare in Russia," European Economic Review, Elsevier, vol. 46(8), pages 1453-1473, September.
  7. Ada Ferrer-i-Carbonell & Paul Frijters, 2004. "How Important is Methodology for the estimates of the determinants of Happiness?," Economic Journal, Royal Economic Society, vol. 114(497), pages 641-659, 07.
  8. Clark, Andrew E & Oswald, Andrew J, 1994. "Unhappiness and Unemployment," Economic Journal, Royal Economic Society, vol. 104(424), pages 648-59, May.
  9. Pierre-André Chiappori & Bernard Fortin & Guy Lacroix, 2001. "Marriage Market, Divorce Legislation and Household Labor Supply," CIRANO Working Papers 2001s-16, CIRANO.
  10. Chiappori, Pierre-Andre, 1988. "Rational Household Labor Supply," Econometrica, Econometric Society, vol. 56(1), pages 63-90, January.
  11. Senik, Claudia, 2004. "When information dominates comparison: Learning from Russian subjective panel data," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 2099-2123, August.
  12. Winkelmann, Liliana & Winkelmann, Rainer, 1998. "Why Are the Unemployed So Unhappy? Evidence from Panel Data," Economica, London School of Economics and Political Science, vol. 65(257), pages 1-15, February.
  13. 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-00687274, HAL.
  14. Jens Bonke & Martin Browning, 2003. "The Distribution of Well-Being and Income within the Household," CAM Working Papers 2003-01, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
  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 131, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
  16. Yew-Kwang Ng, 1996. "Happiness surveys: Some comparability issues and an exploratory survey based on just perceivable increments," Social Indicators Research, Springer, vol. 38(1), pages 1-27, May.
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Cited by:
  1. Ekaterina Kalugina & Natalia Radtchenko & Catherine Sofer, 2009. "Intra-Household Inequality in Transitional Russia," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00687277, HAL.
  2. Guy Lacroix & Natalia Radtchenko, 2011. "The changing intra-household resource allocation in Russia," Journal of Population Economics, Springer, vol. 24(1), pages 85-106, January.
  3. repec:hal:journl:halshs-00461494 is not listed on IDEAS
  4. 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).
  5. Natalia Radtchenko, 2009. "Identifying Intra-household Welfare Distribution," Documents de recherche 09-04, Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne.

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