The assumption that household income is strongly and positively correlated with a household's real standard of living … earners. This paper shows, in the context of a model of the household with young children present, that this assumption is not … modelling and numerical simulations based on survey data, that household income is a poor indicator of household well-being. …

We study the effectiveness of intra-household insurance among married couples when the husband loses his job due to a … gains recover only a tiny fraction of the household income loss and, in the short-term, public transfers and taxes are a … more important form of insurance. We show that the presence of children in the household is a crucial determinant of the …

(2002) to an intertemporal setting. We first develop a theoretical model to analyze the intra-household distribution of … setting. We show that wages are positively related to household labor supply, although cross and lagged effects show negative … correlates. Furthermore, the ability of wives to negotiate the intra-household allocation of non-labor income is mainly driven by …

small, about -0:04. While the wives' earnings gains recover only a tiny fraction of the household income loss, public …. The presence and ages of children in the household are crucial determinants of the wife's labor supply response. The most … explanation for the limited scope of intra-household insurance. …