IDEAS home Printed from https://ideas.repec.org/p/kud/kuieca/2003_01.html
   My bibliography  Save this paper

The Distribution of Well-Being and Income within the Household

Author

Listed:
  • 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.

Suggested Citation

  • 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.
  • Handle: RePEc:kud:kuieca:2003_01
    as

    Download full text from publisher

    File URL: http://www.econ.ku.dk/cam/wp0910/wp0203/2003-01.pdf/
    Download Restriction: no

    References listed on IDEAS

    as
    1. Martin Gervais & Manish Pandey, 2008. "Who Cares About Mortgage Interest Deductibility?," Canadian Public Policy, University of Toronto Press, vol. 34(1), pages 1-24, March.
    2. Martins, Nuno C. & Villanueva, Ernesto, 2006. "The impact of mortgage interest-rate subsidies on household borrowing," Journal of Public Economics, Elsevier, pages 1601-1623.
    3. Jappelli, Tullio & Pistaferri, Luigi, 2007. "Do people respond to tax incentives? An analysis of the Italian reform of the deductibility of home mortgage interests," European Economic Review, Elsevier, vol. 51(2), pages 247-271, February.
    4. Sule Alan, 2005. "Entry Costs and Stock Market Participation Over the Life Cycle," Working Papers 2005_1, York University, Department of Economics.
    5. King, Mervyn A. & Leape, Jonathan I., 1998. "Wealth and portfolio composition: Theory and evidence," Journal of Public Economics, Elsevier, pages 155-193.
    6. Honore, Bo E, 1992. "Trimmed LAD and Least Squares Estimation of Truncated and Censored Regression Models with Fixed Effects," Econometrica, Econometric Society, vol. 60(3), pages 533-565, May.
    7. Thomas Crossley & Hamish Low, 2011. "Borrowing constraints, the cost of precautionary saving and unemployment insurance," International Tax and Public Finance, Springer;International Institute of Public Finance, pages 658-687.
    8. Luigi Guiso & Tullio Jappelli, 2000. "Household Portfolios in Italy," CSEF Working Papers 43, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    9. Hubbard, Robert Glenn, 1985. "Personal Taxation, Pension Wealth, and Portfolio Composition," The Review of Economics and Statistics, MIT Press, pages 53-60.
    10. James M. Poterba, 2001. "Taxation and Portfolio Structure: Issues and Implications," NBER Working Papers 8223, National Bureau of Economic Research, Inc.
    11. Feldstein, Martin S, 1976. "Personal Taxation and Portfolio Composition: An Econometric Analysis," Econometrica, Econometric Society, vol. 44(4), pages 631-650, July.
    12. Sule Alan, 2006. "Entry Costs and Stock Market Participation over the Life Cycle," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 9(4), pages 588-611, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    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, pages 360-391.
    2. Benvin, Evelyn & Rivera, Elizabeth & Tromben, Varinia, 2016. "A multidimensional time use and well-being index: a proposal for Colombia, Ecuador, Mexico and Uruguay," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    3. Ekaterina Kalugina & Natalia Radtchenko & Catherine Sofer, 2008. "Une analyse du partage intrafamilial du revenu à partir de données subjectives," Economie & Prévision, La Documentation Française, pages 101-116.
    4. Rob Alessie & Thomas Crossley & Vincent Hildebrand, 2006. "Estimating a collective household model with survey data on financial satisfaction," IFS Working Papers W06/19, Institute for Fiscal Studies.
    5. 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.
    6. 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.
    7. John Creedy, 2013. "Alternative Distributions for Inequality and Poverty Comparisons," Treasury Working Paper Series 13/11, New Zealand Treasury.
    8. repec:hal:journl:hal-00687277 is not listed on IDEAS
    9. Jérôme De Henau, 2008. "Asymetric power within couples: the gendered effect of children and employment on entitlement to household income," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, pages 269-290.
    10. John Creedy, 2013. "Alternative Distributions for Inequality and Poverty Comparisons," Treasury Working Paper Series 13/11, New Zealand Treasury.
    11. Inmaculada García & José Molina & María Navarro, 2007. "How Satisfied are Spouses with their Leisure Time? Evidence from Europe," Journal of Family and Economic Issues, Springer, vol. 28(4), pages 546-565, December.
    12. Martina Mysíková, 2010. "Income Inequalities within Couples in the Czech Republic and European Countries," LIS Working papers 552, LIS Cross-National Data Center in Luxembourg.
    13. 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).
    14. 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).
    15. Ekaterina Kalugina & Natalia Radtchenko & Catherine Sofer, 2008. "Une analyse du partage intrafamilial du revenu à partir de données subjectives," Economie & Prévision, La Documentation Française, pages 101-116.
    16. Perez Truglia, Ricardo Nicolas & Bottan, Nicolas Luis, 2008. "Deconstructing the Hedonic Treadmill: Is Happiness Autoregressive?," MPRA Paper 20340, University Library of Munich, Germany.
    17. 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.
    18. Jens Bonke & Mette Deding & Mette Lausten, 2009. "Time and Money," Journal of Happiness Studies, Springer, pages 113-131.

    More about this item

    Keywords

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

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D60 - Microeconomics - - Welfare Economics - - - General
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kud:kuieca:2003_01. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Hoffmann). General contact details of provider: http://edirc.repec.org/data/camkudk.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.