We propose a method of application of the collective model to the analysis of intra-household inequality using self reported satisfaction scales. We propose to interpret intra-household equality as an equal distribution of utility between the household members. Starting with a collective model including household production under the assumption of marketable domestic goods, we look at the links between reported satisfaction levels and the theoretical results of the collective model. Then using the results obtained with couples who report the same level of satisfaction, interpreting this as an equal distribution of utility, we derive the constant of the sharing rule for the whole sample: we thus propose a new method for deriving, not only the derivatives, but the sharing rule itself.
The results are compared with these obtained by equal income sharing approach (“Using Selfreported Income in a Collective Model: Within – Household Income Comparisons”, Kalugina, Radtchenko, Sofer, 2005) when intra-household equality is interpreted as an equal distribution of the whole resources between the members of the household. The resources taken into account are labour and non-labour incomes and household production output. The model is formulated as an endogenous probit model: the probit equation comparing well-being levels of household members derives from the sharing rule and thus its explanatory variables are the same which are endogenised in simultaneous labour supply equations for husband and wife. The model is estimated by the method of maximum likelihood (MLE). We use round V – VIII of Russian Longitudinal Monitoring Survey allowing for the empirical application of the theory by exploiting the time use data.