Does personality affect the allocation of resources within households?

This paper examines whether personality influences the allocation of resources within households. I model households as couples that make Pareto-efficient allocations and divide resources according to a distribution function. Using a sample of Dutch couples from the LISS survey, which includes detailed individual-level data on consumption, labor supply, and personality traits, I investigate two structural channels through which personality can affect intrahousehold allocations. First, I show that personality, acting as a taste shifter, significantly influences preferences for consumed goods and leisure time. Second, by testing distribution factor proportionality and the exclusion restriction of a conditional demand system, I find that personality can act as a distribution factor. Specifically, differences in personality traits between spouses shape resource allocation by influencing the bargaining process within households. For example, women who are relatively more conscientious and engage more cognitively than their male partners receive a larger share of intrafamily resources. This paper thus provides empirical evidence on how personality traits can contribute to consumption inequality within families.