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Intrahousehold Welfare: Theory and Application to Japanese Data

Author

Listed:
  • Chiappori, Pierre-André
  • Meghir, Costas
  • Okuyama, Yoko

Abstract

In this paper we develop a novel approach to measuring individual welfare within households, recognizing that individuals may have both different preferences (particularly regarding public consumption) and differential access to resources. We construct a money metric measure of welfare that accounts for public goods (by using personalized prices) and the allocation of time. We then use our conceptual framework to analyse intrahousehold inequality in Japan, allowing for the presence of two public goods: expenditures on children and other public goods including housing. We show empirically that women have much stronger preferences for both public goods and this has critical implications for the distribution of welfare in the household.

Suggested Citation

  • Chiappori, Pierre-André & Meghir, Costas & Okuyama, Yoko, 2024. "Intrahousehold Welfare: Theory and Application to Japanese Data," CEPR Discussion Papers 19194, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:19194
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    More about this item

    JEL classification:

    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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