In this essay, we discuss the importance of consumption inequality in the debate concerning the measurement of disparities in economic well-being. We summarize the advantages and disadvantages of using consumption as opposed to income for measuring trends in economic well-being. We critically evaluate the available evidence on these trends, and in particular discuss how the literature has evolved in its assessment of whether consumption inequality has grown as much as or less than income inequality. We provide some novel evidence on three relatively unexplored themes: inequality in different spending components, inequality in leisure time, and intergenerational consumption mobility.
Authors
CPP Co-Director
Orazio is an International Research Fellow at the IFS, a Professor at Yale and a Research Associate at the National Bureau of Economic Research.
Stanford University
Journal article details
- DOI
- 10.1257/jep.30.2.3
- Publisher
- American Economic Association
- Issue
- Volume 30, Issue 2, March 2016, pages 3-28
Suggested citation
Attanasio, O and Pistaferri, L. (2016). 'Consumption inequality' 30(2/2016), pp.3–28.
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