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Intra-household income inequality and poverty in a small developing economy

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  • Sunil Kumar
  • Renuka Mahadevan

Abstract

Ignoring consumption inequality between individuals within a household is shown to not only underestimate the Gini coefficient and poverty measures but these vary considerably over different income groups even in a small island state like Fiji. Interestingly, the Kuznets curve for intra-household inequality is absent and to our knowledge the paper provides the first attempt in determining the factors that influence intra-household inequality. It was found that variation in the age of family members only affected inequality in low-expenditure groups while total assets affected inequality in the mid-level-expenditure group. Age variations arise due to the existence of intergenerational family structure among the poorer households and strong affinity towards asset accumulation among the middle class could have harmful effects on the development of children and the welfare of the weaker members within such families. These intra-family distributional problems can be addressed through targeted redistributive policies to provide additional resources and enhance family cohesion.

Suggested Citation

  • Sunil Kumar & Renuka Mahadevan, 2011. "Intra-household income inequality and poverty in a small developing economy," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 16(2), pages 143-162.
    • Handle: RePEc:taf:rjapxx:v:16:y:2011:i:2:p:143-162
    DOI: 10.1080/13547860.2011.564747
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    References listed on IDEAS

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    1. Jeremy Lise & Shannon Seitz, 2011. "Consumption Inequality and Intra-household Allocations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 78(1), pages 328-355.
    2. Sunil Kumar & Renuka Mahadevan, 2008. "Construction of An Adult Equivalence Index to Measure Intra-household Inequality and Poverty: Case Study," Discussion Papers Series 363, School of Economics, University of Queensland, Australia.
    3. Jean-Yves Duclos & Abdelkrim Araar, 2006. "Poverty and Equity," Economic Studies in Inequality, Social Exclusion, and Well-Being, Springer, number 978-0-387-33318-2, July.
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    1. Hanrui Jia & Peng Zhan, 2021. "Intra‐family Income Redistribution and Its Dynamic Changes among the Elderly in China: 2002–2018," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 29(5), pages 84-104, September.

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