Who gets what? Gender differences in "spendable" income

Feminist policy makers need accurate measures of inequality in the economic well-being of men and women. In this paper, we explain why the wage gap by gender gives a misleading measure of women's relative economic well-being in the United States, emphasizing the effects of income pooling within households. We construct a household-level index of women's "spendable" income relative to men's that builds on Randy Albelda's (1988) "PAR index." We improve on the PAR index in three ways. First, we account for economies of scale associated with additional household members. Second, we utilize the Current Population Survey to capture the impact of government taxes and transfers, providing an indicator of "spendable," rather than "money," income. Finally, as a step toward redefining the concept of "spendable" income, we deduct a lower-bound estimate of child care costs.