Identifying Intra-household Welfare Distribution

The paper proposes a new application of the collective model of household be- haviour to the analysis of intra-household inequality using the answers to the ques- tions on subjective welfare. The collective approach attributes to each household member distinct preferences and assumes that household decisions are Pareto efficient. The individual choices are guided by the sharing rule describing the intra-household decision making. So far, most empirical studies based on the collective approach have been restricted to the identification of the sharing rule up to a constant. This study extends the work of Kalugina, Radtchenko, Sofer (2009) and proposes a new method of the sharing rule identification using the information on individual welfare satisfaction as an additional source of analysis. In spite of different sources of identification used in the two analyses and substantial differences of the econometric models adopted according to the identification sources, the results of the sharing rule estimation are qualitatively and quantitatively similar to those obtained in Kalugina, Radtchenko, Sofer (2009).