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From income and consumption inequality to economic welfare inequality: the role of labor supply

Theloudis, Alexandros (2011): From income and consumption inequality to economic welfare inequality: the role of labor supply.

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Abstract

This paper discusses the links between earnings, consumption and economic welfare inequality. It places emphasis on the role of leisure and labor supply in the assessment of cross-household inequality and argues that the documented increase of such inequality has its origin in the labor market. It only serves as an introductory work and, as such, it attempts to outline the research frontier in the field of household inequality and address the issues that arise when household labor supply decisions are taken into consideration.

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