The role of income pooling and decision-making responsibilities in material deprivation

This paper analyzes to what extent family arrangements are linked to the level of household material deprivation. This key dimension of individual well-being is defined as the enforced inability to afford financial expenses, durable goods, and adequate housing conditions. We define family arrangements in terms of the degree to which resources are pooled and the main decision maker. Using the EU-SILC dataset, we find that households where decision-making responsibilities fall chiefly on females have lower deprivation levels regardless of the degree of income pooling. In contrast, greater levels of deprivation are more likely in households where decisions are shared and resources are not fully pooled. These findings highlight the importance of integrating family arrangements in the design of actions and initiatives aimed at reducing inequalities and improving the general welfare of the economy.