The Economics of Power and Poverty in the Home

Abstract

The primary goal of economics is, or should be, to improve individual well-being. Yet most analyses of poverty, inequality, and redistribution still treat the household as the unit of observation, and most data are collected at that level. This would be acceptable if resources were shared fairly within families, but extensive research across the social sciences shows that they are not: women, men, and children often experience very different living standards within the same household. This volume, therefore, begins by examining what can be measured about the allocation of resources and well-being inside households, with particular attention to gender inequality and child poverty. It reviews the main microeconomic models and empirical tools used to study intra-household dynamics and assesses their contributions and limitations. The analysis then turns to the demographic, economic, and social factors that shape these inequalities, including women’s labour-market participation, control over income and assets, and contextual factors, including formal and informal norms. Many of these elements are also useful indicators for policy intervention, helping identify situations in which inequities within families are especially severe. A final section specifically focuses on redistributive policies—such as cash transfers, in-kind benefits, commodity and income taxation—and shows how they can affect power relations and change the poverty status of women and children. The volume engages with current debates and recent evidence and concludes by addressing the normative challenges of designing equitable public policies in a world where inequality exists not only between households but also within them.