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What is the Contribution of Intra­‐household Inequality to Overall Income Inequality? Evidence from Global Data, 1973-­2013

Deepak Malghan and Hema Swaminathan
2016
Working Paper No
522
Body

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.

Key words
earnings, inequality, intra­‐household; Theil decomposition
WP No. 522.pdf (4.19 MB)

What is the Contribution of Intra­‐household Inequality to Overall Income Inequality? Evidence from Global Data, 1973-­2013

Author(s) Name: Deepak Malghan and Hema Swaminathan, 2016
Working Paper No : 522
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
WP No. 522.pdf (4.19 MB)