@TechReport{iza:izadps:dp16803,
            	author={Hermle, Johannes and Herold, Elena and Hildebrand, Nikolaus},
            	title={Preferences over Relative Income within the Household},
            	year={2024},
	month={Feb},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={16803},
            	url={https://www.iza.org/publications/dp16803},
	abstract={What preferences do partners hold over their relative income within the household? We provide a flexible framework of preferences over relative income within the household that captures various motives, including inequality aversion and a preference for being the primary earner. We study the role of these preferences for marital selection, separation and household public good provision in a marriage market matching model with search frictions. We test the model predictions using large administrative tax data from Germany. We document the existence of a kink point in the relative income distribution at the point of spousal income equality, consistent with the presence of kinked preferences over relative income. We also find the presence of a convex kink in wives' household public good provision, suggesting that women bear the incidence of spousal relative income preferences. To disentangle the preferences of women and men, we implement a survey experiment. Our results indicate that women exhibit inequality aversion while men exhibit a preference for being the primary earner.},
	keywords={relative income concerns;relative income distribution},
            }