INTRA-HOUSEHOLD WELFARE By

In this paper we develop an approach to measuring inequality and poverty that recognizes the fact that individuals within households may have both di¤erent preferences and di¤erential access to resources. We argue that a measure based on estimates of the sharing rule is inadequate as an approach that seeks to understand how welfare is distributed in the population because it ignores public good and the allocation of time to market work, leisure and household production. We develop a money metric measure of welfare that accounts for public goods (by using personalized prices) household production and for the allocation of time. Acknowledgements: Pierre-André Chiappori gratefully acknowledges …nancial support from the NSF (grant 1124277). Costas Meghir is grateful for …nancial support by the Cowles foundation and the Institution for Social and Policy Studies at Yale. Moreover, we thank Tony Atkinson, Francois Bourguignon and Marc Fleurbaey for useful comments on a previous version. The usual disclaimer applies.