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Intrahousehold Welfare: Theory and Application to Japanese Data

Author

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

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

  • Pierre-André Chiappori & Costas Meghir & Yoko Okuyama, 2024. "Intrahousehold Welfare: Theory and Application to Japanese Data," NBER Working Papers 32645, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:32645
    Note: CH LS PE
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    More about this item

    JEL classification:

    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • 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
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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