Are Better Off Households More Unequal or Less Unequal?

The object of this paper is to investigate the implications of intrahousehold bargaining models for the behavior of intrahousehold inequality as a function of total household resources. The authors 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, the authors find that bargaining models tend to lead to a greater emphasis on targeting to disadvantaged members of a household. Copyright 1994 by Royal Economic Society.