"Intra-Household Welfare Inequality and Household Public Goods" by Pierre-André Chiappori, Costas Meghir et al.
 

Document Type

Discussion Paper

Publication Date

2-2025

CFDP Number

2395R1

CFDP Pages

64

Journal of Economic Literature (JEL) Code(s)

D1,D11,D13,J16

Abstract

In this paper we develop a novel approach to measuring individual welfare within households, recognizing that individuals may have both different preferences (particularly regarding public consumption) and differential access to resources. We construct a money metric measure of welfare that accounts for public goods (by using personalized prices) and the allocation of time. We then use our conceptual framework to analyse intrahousehold inequality in Japan, allowing for the presence of two public goods: expenditures on children and other public goods including housing. We show empirically that women have much stronger preferences for both public goods and this has critical implications for the distribution of welfare in the household.

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