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Beyond Vows: Family Structure and Consumption Inequality

Author

Listed:
  • Zainab Iftikhar

    (University of Bonn & CEPR)

  • Theresa Linhard

    (University of Bonn)

  • Hanna Schwank

    (University of Bonn)

Abstract

This paper studies how family structure shapes consumption inequality and poverty in the USA. Using PSID data and a collective household model, we estimate sharing rules for married and cohabitating couples and recover individual-level consumption. In the full sample, cohabitating couples appear more egalitarian on average, with women receiving a share of household resources 9% higher than married women. These differences reflect systematic differences in characteristics across union types and largely disappear when comparing otherwise similar couples. Half of the economy-wide consumption inequality is explained by inequality between and within married households. 7% comes from cohabitation, 23% from between singles while the rest is explained by inequality between these three groups. Quantitatively, distinguishing cohabitation increases the role of between-group inequality and changes the assessment of poverty.

Suggested Citation

  • Zainab Iftikhar & Theresa Linhard & Hanna Schwank, 2026. "Beyond Vows: Family Structure and Consumption Inequality," ECONtribute Discussion Papers Series 409, University of Bonn and University of Cologne, Germany.
    • Handle: RePEc:ajk:ajkdps:409
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    More about this item

    Keywords

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    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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