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Child welfare and intra-household inequality in Albania

  • Lucia Mangiavacchi


    (University of Florence)

  • Luca Piccoli


    (Paris School of Economics)

The present paper aims at contributing to the literature on children welfare evaluation by taking into account for intra-household distribution of resources and, as a consequence, intra-household inequality. This task cannot be accomplished within the standard framework of unitary model of consumption, and equivalence scales helps only partially, since their scope is different. To investigate what happens within the family's black box we refer to collective models, recovering information about the decision of how resources are distributed within the household. We use the estimated sharing rule to draw some conclusions about the role played by intra-household inequality for children welfare in Albania and look at the effects that different public policies can have on child welfare. We find that taking into account for intra-household inequality raises the Gini of children welfare by nearly 10 percentage points and that in-kind transfers are more effective than cash transfers in ameliorating children well-being.

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Paper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 149.

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Length: 30 pages
Date of creation: 2009
Date of revision:
Handle: RePEc:inq:inqwps:ecineq2009-149
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  3. Eugenio Peluso & Alain Trannoy, 2004. "Does Less Inequality among Households Mean Less Inequality among Individuals?," IDEP Working Papers 0407, Institut d'economie publique (IDEP), Marseille, France, revised Jun 2004.
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  6. Chiappori, P.A., 1989. "Collective Labour Supply and Welfare," DELTA Working Papers 89-07, DELTA (Ecole normale supérieure).
  7. Bourguignon, F., 1999. "The Cost of Children: May the Collective Approach to Household Behavior Help?," DELTA Working Papers 1999-01, DELTA (Ecole normale supérieure).
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  27. Chiappori, P.A. & Ekeland, I., 2006. "The micro economics of group behavior: General characterization," Journal of Economic Theory, Elsevier, vol. 130(1), pages 1-26, September.
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