Intra-household Inequality and Subjective Well-being

Abstract

We use the unique data on consumption and time use of married couples to measure intra-household inequality. Following Lise and Seitz (2011), we estimate consumption inequality between households in Japan. We find that consumption inequality between households has remained stable since 2000, while intra-household inequality has declined. We also examine whether intra-household inequality affects subjective well-being of wives. We find that inequality in intra-household consumption reduces the subjective well-being of wives. Our results are robust when we consider the relative income hypothesis. Our findings suggest that subjective well-being is affected by inequality both between and within households.