Abstract
Inequality within the household is neglected in wealth inequality re-search due to paucity of data and established theoretical frames for accounting for intrahousehold distribution. We develop a framework for welfare theoretic interpretation of intrahousehold wealth inequality. Illustrative data from India shows that 32% of total wealth inequality is attributable to intrahousehold inequality that results in a median welfare loss of as much as 80% for plausible values of inequality aversion.
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