What is mean Equivalised income?
Equivalised income is a measure of household income that takes account of the differences in a household’s size and composition, and thus is equivalised or made equivalent for all household sizes and compositions. It is used for the calculation of poverty and social exclusion indicators.
What is adult equivalent scale?
An adult equivalence scale is defined as the proportionate increase in income per adult necessary to maintain a certain level of household living standard given some change in demographic circumstances (typically, the introduction of children). Values for such scales might be obtained in any of a number of ways.
How do you calculate Equivalised disposable household income?
Equivalised household income is derived by dividing total household income by a factor equal to the sum of the equivalence points allocated to the household members.
What is Equivalised disposable household income?
Equivalised total household income is household income adjusted by the application of an equivalence scale to facilitate comparison of income levels between households of differing size and composition, reflecting that a larger household would normally need more income than a smaller household to achieve the same …
What is the household equivalence scale?
Definition. A household equivalence scale allows for transforming the income in an n-member household into an equivalent one-adult-member household. This is necessary for well-being comparisons across households with different number of members.
How do you calculate adult equivalence?
Summary
- Equivalisation is a term that describes the measurement of household income by giving the members of a household different weightings.
- Equivalised income is calculated by dividing the total household income by the total of the weightings.
What is real household disposable income?
The amount of money that that all of the individuals in the household sector have available for spending or saving after income distribution measures (for example, taxes, social contributions and benefits) have taken effect.