What Is the Contribution of Intra-Household Inequality to Overall Income Inequality? Evidence from Global Data, 1973-2013

32 Pages Posted: 6 Sep 2016

See all articles by Deepak V. Malghan

Deepak V. Malghan

Indian Institute of Management (IIMB), Bangalore

Hema Swaminathan

Indian Institute of Management (IIMB), Bangalore

Date Written: September 6, 2016

Abstract

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

Suggested Citation

Malghan, Deepak V. and Swaminathan, Hema, What Is the Contribution of Intra-Household Inequality to Overall Income Inequality? Evidence from Global Data, 1973-2013 (September 6, 2016). IIM Bangalore Research Paper No. 522. Available at SSRN: https://ssrn.com/abstract=2835276 or http://dx.doi.org/10.2139/ssrn.2835276

Deepak V. Malghan (Contact Author)

Indian Institute of Management (IIMB), Bangalore ( email )

Bannerghatta Road
Bangalore, Karnataka 560076
India

Hema Swaminathan

Indian Institute of Management (IIMB), Bangalore ( email )

Bannerghatta Road
Bangalore, Karnataka 560076
India

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