Working Paper: NBER ID: w20189
Authors: Pierre-André Chiappori; Costas Meghir
Abstract: In this paper we develop an approach to measuring inequality and poverty that recognizes the fact that individuals within households may have both different preferences and differential access to resources. We argue that a measure based on estimates of the sharing rule is inadequate as an approach that seeks to understand how welfare is distributed in the population because it ignores public good and the allocation of time to market work, leisure and household production. We develop a money metric measure of welfare that accounts for public goods (by using personalized prices) household production and for the allocation of time.
Keywords: No keywords provided
JEL Codes: D1; D11; D13
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| method of measuring welfare (I30) | understanding of individual well-being (I31) |
| allocation of benefits to one spouse (D14) | household behavior (D10) |
| allocation of benefits to one spouse (D14) | individual welfare (I30) |
| distribution of resources (D30) | individual outcomes (I14) |
| money metric measure of welfare (I31) | individual welfare (I30) |
| collective decision-making processes (D70) | individual welfare outcomes (I31) |