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Impact of Definition of Consumption Units on Equivalised Household Incomes in the Czech Republic
[Vliv definice spotřebních jednotek na ekvivalizované příjmy domácností v České republice]

Author

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  • Ivana Malá

Abstract

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).

Suggested Citation

  • Ivana Malá, 2016. "Impact of Definition of Consumption Units on Equivalised Household Incomes in the Czech Republic [Vliv definice spotřebních jednotek na ekvivalizované příjmy domácností v České republice]," Acta Oeconomica Pragensia, Prague University of Economics and Business, vol. 2016(3), pages 53-67.
    • Handle: RePEc:prg:jnlaop:v:2016:y:2016:i:3:id:536:p:53-67
    DOI: 10.18267/j.aop.536
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    References listed on IDEAS

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    1. Salverda, Wiemer & Nolan, Brian & Checchi, Daniele & Marx, Ive & McKnight, Abigail & Toth, Istvan Gy (ed.), 2014. "Changing Inequalities in Rich Countries: Analytical and Comparative Perspectives," OUP Catalogue, Oxford University Press, number 9780199687435.
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    More about this item

    Keywords

    equivalence scale; household income; equivalised income;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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