New measure reveals hidden inequalities within households and impacts welfare distribution.
The article discusses how to measure inequality and poverty within households by considering that people in the same household may have different preferences and access to resources. The researchers argue that the traditional method of estimating sharing rules is not enough to understand how welfare is distributed because it overlooks public goods and time allocation. They introduce a new measure that includes personalized prices for public goods, household production, and time allocation to market work, leisure, and household tasks.