Income Distribution and Economic Well-Being within European Families

The article analyses the distribution of income within European families and the consequences for the spouses’ economic well-being. Thus, many studies have shown that women nowadays participate on the labour market in an increasing number resulting in a more equal distribution of income within the family. However, it is still an open ended question, if this means an equal distribution of economic well-being within the family. The paper exercises data from the European Community Household Panel and covers the situation in most of the European Community countries. In most countries husbands economic well-being declines and wives raises the more she earns relatively to him. However, the relationships are often of an inversed u-shaped form for both sexes with men getting the highest well-being at an earlier stage than women. Within the Scandinavian welfare state regime this preferred distribution is closer to the actual income distribution than in the Continental European and Liberal regimes, and in the Southern European regime the preferences are far away from being achieved. In The Netherlands and in Ireland the preferences are for a traditional bread-winner model, as there is found a u-shaped relationship between the distribution of income and men and women’s economic well-being.