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Intrahousehold Economies of Scale with Application to Food Assistance and Work Incentive Programs

Comparing income levels across families with different household compositions and sizes is not easy and has been a long‐term focus in welfare and policy analysis. This paper evaluates the extent childless two‐person households in the U.S. reduce their costs by living together relative to living alon...

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Published in:	American journal of agricultural economics 2021-08, Vol.103 (4), p.1251-1267
Main Authors:	Li, Wenying, Dorfman, Jeffrey H.
Format:	Article
Language:	English
Subjects:	Agricultural economics Childlessness Collective household model D12 D13 Economies of scale EITC Expenditures food assistance household resource sharing Households I32 I38 Income indifference scale Living alone Policy analysis Poverty Q18 SNAP Welfare Women
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container_title	American journal of agricultural economics
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description	Comparing income levels across families with different household compositions and sizes is not easy and has been a long‐term focus in welfare and policy analysis. This paper evaluates the extent childless two‐person households in the U.S. reduce their costs by living together relative to living alone. Using a structural collective household model and household scanner data, we find women, on average, consume 48% of total household expenditures, and a woman (man) living alone would need approximately 65% (63%) of the two‐person household's income to reach the same living standard as attained as a member of a two‐person household. Our results suggest the poverty line for two‐person childless households may need to be increased, whereas other federal benefit calculations are overly generous.
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source	International Bibliography of the Social Sciences (IBSS); Wiley:Jisc Collections:Wiley Read and Publish Open Access 2024-2025 (reading list); EBSCOhost Econlit with Full Text; Business Source Ultimate (EBSCOHost)
subjects	Agricultural economics Childlessness Collective household model D12 D13 Economies of scale EITC Expenditures food assistance household resource sharing Households I32 I38 Income indifference scale Living alone Policy analysis Poverty Q18 SNAP Welfare Women
title	Intrahousehold Economies of Scale with Application to Food Assistance and Work Incentive Programs
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