Acta Oeconomica Pragensia 2016, 24(3):53-67 | DOI: 10.18267/j.aop.536

Impact of Definition of Consumption Units on Equivalised Household Incomes in the Czech Republic

Ivana Malá
Vysoká ąkola ekonomická v Praze, Fakulta informatiky a statistiky (malai@vse.cz).

Equivalised incomes are frequently used in order to make adjustments to the actual incomes of households in a way that enables analysis of the relative wellbeing of households of different sizes and compositions (numbers of adults, numbers of children and their ages). In the paper, different methods of evaluation of equivalised units (equivalised numbers of members) are discussed and their impact on derived equivalised incomes is shown. Equivalised total annual net incomes of Czech households (in CZK) defined by four scales (numbers of members, OECD-modified scale, OECD scale, square root scale) are analysed for the time period 2007-2010 based on EU-SILC data from the surveys in 2008 to 2011. The incomes are compared with respect to sample distributions and descriptive characteristics of their level and variability; development in time is also of interest. A strong dependence is expected and quantified (from different points of view) among all the equivalised incomes treated (in given years).

Keywords: equivalence scale, household income, equivalised income
JEL classification: C23, D31, J31

Published: June 1, 2016  Show citation

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Malá, I. (2016). Impact of Definition of Consumption Units on Equivalised Household Incomes in the Czech Republic. Acta Oeconomica Pragensia, 24(3), 53-67. doi: 10.18267/j.aop.536
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