| Sumario: | A study was conducted to examine the implications of intra-household bargaining models for the behavior of intra-household inequality as a function of total household resources. A mathematical model of cooperation in household production was used to identify the Nash bargaining solution and to investigate any changes that occur in intra-household inequality as the household becomes better off. The model was extended further from the perspective of noncooperative bargaining. Findings indicate theoretical support for “Kuznets effects,” that is, a systematic pattern of inequality change as the total household resources increase. There is a theoretical rationale for the “Kuznets curve” at the micro level: Under certain conditions, a general improvement in household resources leads first to an increase and then to a reduction in intra-household inequality. The implications of intra-household bargaining models for two prominent questions in the policy debate are discussed.
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