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HOW DO SPOUSES SHARE THEIR FULL INCOME? IDENTIFICATION OF THE SHARING RULE USING SELF‐REPORTED INCOME
Author(s) -
Kalugina Ekaterina,
Radtchenko Natalia,
Sofer Catherine
Publication year - 2009
Publication title -
review of income and wealth
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.024
H-Index - 57
eISSN - 1475-4991
pISSN - 0034-6586
DOI - 10.1111/j.1475-4991.2009.00323.x
Subject(s) - economics , sample (material) , identification (biology) , inequality , test (biology) , economic inequality , econometrics , demographic economics , public economics , mathematics , mathematical analysis , paleontology , chemistry , botany , chromatography , biology
The paper applies the collective model to the analysis of intra‐household inequality using one of the subjective‐qualitative questions available in the RLMS (Russia Longitudinal Monitoring Survey) data, and provides a test for its assumptions. Interpreting the individual answers as reported budget scales we assume a correspondence between the budget level that household members report and their true income sharing. We first show that this assumption is supported by the data, and then use couples who report the same level of budget to identify the full sharing rule for the whole sample.