Intra-Household Inequality and Overall Inequality

16 Pages Posted: 3 Jan 2017

See all articles by Ravi Kanbur

Ravi Kanbur

Cornell University; Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics

Date Written: December 2016

Abstract

Assessing the specific contribution of intra-household inequality to standard measures of overall inequality and poverty is an underdeveloped area of research and policy analysis. However, intra-household inequality is clearly important. It is argued in this paper that neglecting intra-household inequality could lead to (i) an understatement of inequality and an overstatement of the impact of growth on poverty reduction; (ii) a mis-statement of the potential impact of minimum wage policies on poverty; (iii) mis-design of transfer policies to reduce inequality and poverty. Any discussion of inequality in the welfare state cannot afford to ignore intra-household inequality.

Suggested Citation

Kanbur, Ravi, Intra-Household Inequality and Overall Inequality (December 2016). CEPR Discussion Paper No. DP11719, Available at SSRN: https://ssrn.com/abstract=2893072

Ravi Kanbur (Contact Author)

Cornell University ( email )

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IZA Institute of Labor Economics

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