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Intra-household income inequality and poverty in a small developing economy

Kumar, Sunil and Mahadevan, R. (2011) Intra-household income inequality and poverty in a small developing economy. Journal of the Asia Pacific Economy, 16 (2). pp. 143-162. ISSN 1354-7860

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Ignoring consumption inequality between individuals within a household is shown to not only underestimate the Gini coefficient and poverty measures but these vary considerably over different income groups even in a small island state like Fiji. Interestingly, the Kuznets curve for intra-household inequality is absent and to our knowledge the paper provides the first attempt in determining the factors that influence intra-household inequality. It was found that variation in the age of family members only affected inequality in low-expenditure groups while total assets affected inequality in the mid-level-expenditure group. Age variations arise due to the existence of intergenerational family structure among the poorer households and strong affinity towards asset accumulation among the middle class could have harmful effects on the development of children and the welfare of the weaker members within such families. These intra-family distributional problems can be addressed through targeted redistributive policies to provide additional resources and enhance family cohesion.

Item Type: Journal Article
Subjects: H Social Sciences > HC Economic History and Conditions
Divisions: Faculty of Business and Economics (FBE) > School of Economics
Depositing User: Ms Shalni Sanjana
Date Deposited: 13 Jun 2011 08:18
Last Modified: 03 Feb 2014 23:17

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