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How families matter for understanding economic inequality

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  • Santos, Cezar
  • Tertilt, Michèle

Abstract

In this paper we discuss the importance of families for understanding economic inequality. Family structure can in principle be an amplifier or mitigator of economic inequality. We describe three channels on how families shape economic inequality. First, how people match to form families matters for inequality across families. Second, parental investments in children can amplify existing inequalities across generations. Third, inequality can exist even within families, and the economic environment can shape inequality in consumption and leisure between spouses. In this survey we describe these channels and discuss the related literature.

Suggested Citation

  • Santos, Cezar & Tertilt, Michèle, 2023. "How families matter for understanding economic inequality," IDB Publications (Working Papers) 13080, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:13080
    DOI: http://dx.doi.org/10.18235/0005124
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    References listed on IDEAS

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    1. Doepke, M. & Tertilt, M., 2016. "Families in Macroeconomics," Handbook of Macroeconomics, in: J. B. Taylor & Harald Uhlig (ed.), Handbook of Macroeconomics, edition 1, volume 2, chapter 0, pages 1789-1891, Elsevier.
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    More about this item

    Keywords

    Families; Inequality; Marriage; children;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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