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Subjective equivalence scales in Eastern versus Western European countries

Author

Listed:
  • Martina Mysíková
  • Tomáš Želinský
  • Thesia I. Garner
  • Kamila Fialová

Abstract

We show that economies of scale estimated individually for each EU country differ from the officially adopted OECD‐modified scale; the differences across the countries further confirm the prevailing East‐West disparity. Using the minimum income question in the 2019 EU‐Statistics on Income and Living Conditions survey, we demonstrate that applying the estimated country‐specific subjective equivalence scales, instead of the uniform OECD‐modified scale, results in up to a 6 pp change in the at‐risk‐of‐poverty rate. If inadequate equivalence scales are used, the equivalised income fails to inform the statistics of income poverty and prevents national social policies from being correctly targeted.

Suggested Citation

  • Martina Mysíková & Tomáš Želinský & Thesia I. Garner & Kamila Fialová, 2022. "Subjective equivalence scales in Eastern versus Western European countries," Contemporary Economic Policy, Western Economic Association International, vol. 40(4), pages 659-676, October.
    • Handle: RePEc:bla:coecpo:v:40:y:2022:i:4:p:659-676
    DOI: 10.1111/coep.12579
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    References listed on IDEAS

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    1. Steven F. Koch, 2023. "Basic Needs (in)Security and Subjective Equivalence Scales," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 169(3), pages 723-757, October.

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