ARE BETTER OFF HOUSEHOLDS MORE UNEQUAL OR LESS UNEQUAL

The object of this paper is to investigate the implications of intra-household bargaining models for the behavior of intra-household inequality as a function of total household resources. We find theoretical support for 'Kuznets effects', i.e. a systematic pattern of inequality change as the total household resources increase. The paper also discusses some policy implications of this relationship. In particular, we find that bargaining models tend to lead to a greater emphasis on targeting to disadvantaged members of a household.