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Identifying Intra-household Welfare Distribution

Author

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  • Natalia Radtchenko

    () (Centre d’Études des politiques Économiques de l’Université d’Evry)

Abstract

The paper proposes a new application of the collective model of household be- haviour to the analysis of intra-household inequality using the answers to the ques- tions on subjective welfare. The collective approach attributes to each household member distinct preferences and assumes that household decisions are Pareto efficient. The individual choices are guided by the sharing rule describing the intra-household decision making. So far, most empirical studies based on the collective approach have been restricted to the identification of the sharing rule up to a constant. This study extends the work of Kalugina, Radtchenko, Sofer (2009) and proposes a new method of the sharing rule identification using the information on individual welfare satisfaction as an additional source of analysis. In spite of different sources of identification used in the two analyses and substantial differences of the econometric models adopted according to the identification sources, the results of the sharing rule estimation are qualitatively and quantitatively similar to those obtained in Kalugina, Radtchenko, Sofer (2009).

Suggested Citation

  • 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.
  • Handle: RePEc:eve:wpaper:09-04
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    File URL: http://epee.univ-evry.fr/RePEc/2009/09-04.pdf
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    References listed on IDEAS

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    1. Ekaterina Kalugina & Natalia Radtchenko & Catherine Sofer, 2009. "How Do Spouses Share Their Full Income? Identification Of The Sharing Rule Using Self-Reported Income," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(2), pages 360-391, June.
    2. Rapoport, Benoît & Sofer, Catherine & Solaz, Anne, 2006. "La production domestique dans les modèles collectifs," L'Actualité Economique, Société Canadienne de Science Economique, vol. 82(1), pages 247-269, mars-juin.
    3. Andrew E. Clark & Hélène Couprie & Catherine Sofer, 2004. "La modélisation collective de l'offre de travail. Mise en perspective et application aux données britanniques," Revue économique, Presses de Sciences-Po, vol. 55(4), pages 767-789.
    4. Guy Lacroix & Natalia Radtchenko, 2011. "The changing intra-household resource allocation in Russia," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(1), pages 85-106, January.
    5. Chiappori, Pierre-Andre, 1988. "Rational Household Labor Supply," Econometrica, Econometric Society, vol. 56(1), pages 63-90, January.
    6. Apps, Patricia F & Rees, Ray, 1997. "Collective Labor Supply and Household Production," Journal of Political Economy, University of Chicago Press, vol. 105(1), pages 178-190, February.
    7. Benoît Rapoport & Catherine Sofer & Anne Solaz, 2011. "Household production in a collective model: some new results," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(1), pages 23-45, January.
    8. 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.
    9. Pierre-Andre Chiappori & Bernard Fortin & Guy Lacroix, 2002. "Marriage Market, Divorce Legislation, and Household Labor Supply," Journal of Political Economy, University of Chicago Press, vol. 110(1), pages 37-72, February.
    10. Chiappori, Pierre-Andre, 1992. "Collective Labor Supply and Welfare," Journal of Political Economy, University of Chicago Press, vol. 100(3), pages 437-467, June.
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    Cited by:

    1. Guy Lacroix & Natalia Radtchenko, 2011. "The changing intra-household resource allocation in Russia," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(1), pages 85-106, January.

    More about this item

    Keywords

    Collective model; Sharing rule; Within-household Inequality; Subjective data;

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling

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