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A Cross‐Country Study Of Equivalence Scales And Expenditure Inequality On Unit Record Household Budget Data

Author

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  • Geoffrey Lancaster
  • Ranjan Ray
  • Maria Rebecca Valenzuela

Abstract

Inequality comparisons require equivalence scales to account for differences in household size and composition. The multiplicity of equivalence scale models makes the sensitivity of the inequality calculations to the scale used a significant policy issue. Such an investigation based on unit records of two adult households from Italy, Australia, South Africa, Thailand, Peru, Philippines, India and Tanzania was our principal motivation. The equivalence scale varies across countries and between different types of children. Inequality rankings of countries, though not the inequality decomposition between households of different composition, are robust to the equivalence scale used.

Suggested Citation

  • Geoffrey Lancaster & Ranjan Ray & Maria Rebecca Valenzuela, 1999. "A Cross‐Country Study Of Equivalence Scales And Expenditure Inequality On Unit Record Household Budget Data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 45(4), pages 455-482, December.
    • Handle: RePEc:bla:revinw:v:45:y:1999:i:4:p:455-482
    DOI: 10.1111/j.1475-4991.1999.tb00360.x
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    Cited by:

    1. Diaz Olvera, Lourdes & Plat, Didier & Pochet, Pascal, 2008. "Household transport expenditure in Sub-Saharan African cities: measurement and analysis," Journal of Transport Geography, Elsevier, vol. 16(1), pages 1-13.
    2. Miguel Szekely & Nora Lustig & Martin Cumpa & Jose Antonio Mejia, 2004. "Do we know how much poverty there is?," Oxford Development Studies, Taylor & Francis Journals, vol. 32(4), pages 523-558.
    3. Regier, Gregory & Zereyesus, Yacob & Dalton, Timothy & Amanor-Boadu, Vincent, 2015. "Do Adult Equivalence Scales Matter in Poverty Estimates? A Ghana Case Study," 2015 Conference, August 9-14, 2015, Milan, Italy 212487, International Association of Agricultural Economists.
    4. Pendakur, Krishna, 2002. "Taking prices seriously in the measurement of inequality," Journal of Public Economics, Elsevier, vol. 86(1), pages 47-69, October.
    5. White, Howard & Masset, Edoardo, 2002. "Child poverty in Vietnam: using adult equivalence scales to estimate income-poverty for different age groups," MPRA Paper 777, University Library of Munich, Germany.
    6. Tripathi, Sabyasachi, 2020. "Does economic development reduce household size? Evidence from India," Journal of Policy Modeling, Elsevier, vol. 42(5), pages 982-999.
    7. Miguel Székely & Marianne Hilgert, 1999. "What's Behind the Inequality we Measure: An Investigation Using Latin American Data," Research Department Publications 4188, Inter-American Development Bank, Research Department.
    8. Setareh Ataian, 2011. "Analysis of households’ urban transportation budget in Tehran [Analyse des dépenses en transport urbain des ménages à Téhéran]," Post-Print halshs-00733368, HAL.
    9. Menggen Chen, 2022. "Engel’s law in China: Some new evidence," Review of Development Economics, Wiley Blackwell, vol. 26(3), pages 1640-1662, August.
    10. Jiquan Peng & Zihao Zhao & Lili Chen, 2022. "The Impact of High-Standard Farmland Construction Policy on Rural Poverty in China," Land, MDPI, vol. 11(9), pages 1-20, September.
    11. John Gibson, 2002. "Why Does the Engel Method Work? Food Demand, Economies of Size and Household Survey Methods," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 64(4), pages 341-359, September.
    12. Melanie Borah, 2020. "Estimating Extended Income Equivalence Scales from Income Satisfaction and Time Use Data," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 149(2), pages 687-718, June.
    13. repec:ilo:ilowps:392059 is not listed on IDEAS
    14. Ana Gil & José Molina, 2009. "Alcohol demand among young people in Spain: an addictive QUAIDS," Empirical Economics, Springer, vol. 36(3), pages 515-530, June.
    15. Burlacu, Irina S. & O'Donoghue, Cathal, 2012. "Differential Welfare State Impacts for Frontier Working Age Families," IZA Discussion Papers 6734, Institute of Labor Economics (IZA).
    16. Alois Guger & Reiner Buchegger & Hedwig Lutz & Christine Mayrhuber & Michael Wüger, 2003. "Schätzung der direkten und indirekten Kinderkosten," WIFO Studies, WIFO, number 24078, April.
    17. Mauro Maltagliati & Gustavo Santis, 2001. "De gustibus non est disputandum? A new approach to the estimation of equivalence scales," Statistical Methods & Applications, Springer;Società Italiana di Statistica, vol. 10(1), pages 211-236, January.
    18. Miguel Székely & Marianne Hilgert, 1999. "¿Qué hay detrás de la desigualdad cuantificada: investigación empleando datos de América Latina," Research Department Publications 4189, Inter-American Development Bank, Research Department.
    19. Christian Dudel & Jan Marvin Garbuszus & Julian Schmied, 2021. "Assessing differences in household needs: a comparison of approaches for the estimation of equivalence scales using German expenditure data," Empirical Economics, Springer, vol. 60(4), pages 1629-1659, April.
    20. Miguel Székely & Nora Lustig & Martin Cumpa & José Antonio Mejía-Guerra, 2000. "¿Sabemos qué tanta pobreza hay?," Research Department Publications 4240, Inter-American Development Bank, Research Department.
    21. Thomas F. Crossley & Krishna Pendakur, 2002. "Consumption Inequality," Department of Economics Working Papers 2002-09, McMaster University.
    22. Vanesa Jorda & Jose M. Alonso, 2020. "What works to mitigate and reduce relative (and absolute) inequality?: A systematic review," WIDER Working Paper Series wp-2020-152, World Institute for Development Economic Research (UNU-WIDER).

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