What Is the Contribution of Intra-Household Inequality to Overall Income Inequality? Evidence from Global Data, 1973-2013
32 Pages Posted: 6 Sep 2016
Date Written: September 6, 2016
Intra-household inequality continues to remain a neglected corner despite renewed focus on income and wealth inequality. Using the LIS micro data, we present evidence that this neglect is equivalent to ignoring up to a third of total inequality. For a wide range of countries and over four decades, we show that at least 30 per cent of total inequality is attributable to inequality within the household. Using a simple normative measure of inequality, we comment on the welfare implications of these trends.
Keywords: earnings, inequality, intra‐household, Theil decomposition
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