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Intra-household distribution of resources and income poverty and inequality in Visegrád countries
[journal article]
Abstract Purpose: The authors aim to demonstrate the impact of allowing for unequal intra-household distribution of resources on income poverty and income inequality. Design/methodology/approach: The paper applies a collective consumption model to study the intra-household distribution of resources in Visegr... view more
Purpose: The authors aim to demonstrate the impact of allowing for unequal intra-household distribution of resources on income poverty and income inequality. Design/methodology/approach: The paper applies a collective consumption model to study the intra-household distribution of resources in Visegrád countries (V4). It utilises subjective financial satisfaction as a proxy for indirect utility from individual consumption to estimate the indifference scales within couples instead of the traditional equivalence scale. The European Union Statistics on Income and Living Conditions (EU-SILC) 2013 and 2018 data are applied. Findings: This study’s results indicate substantial economies of scale from living in a couple that are generally higher than implied by the commonly applied equivalence scale. The sharing rule estimates suggest that at the mean of distribution factors, women receive a consumption share between 0.4 and 0.6; however, some of the results are close to an equal sharing of 0.5. The female consumption share rises with her contribution to household income. Regarding income poverty and inequality, the authors show that both these measures might be underestimated in the traditional approach to equal sharing of resources. Originality/value: The authors add to the empirics by estimating indifference scales for Czechia (CZ), Hungary (HU), Poland (PL) and Slovakia (SK), countries that have not been involved in previous research.... view less
Keywords
inequality; poverty; income situation; difference in income; CEFTA; private household; household income; Czech Republic; Hungary; Poland; Slovakia
Classification
Sociology of Economics
Social Problems
Free Keywords
EU-SILC 2013 ; EU-SILC 2018; collective household model; equivalence scale; indifference scale
Document language
English
Publication Year
2021
Page/Pages
p. 914-930
Journal
International Journal of Social Economics, 48 (2021) 6
DOI
https://doi.org/10.1108/IJSE-10-2020-0671
ISSN
0306-8293
Status
Published Version; peer reviewed