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A Cross-Country Study of Equivalence Scales and Expenditure Inequality on Unit Record Household Budget Data

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Author Info
Lancaster, Geoffrey
Ray, Ranjan
Valenzuela, Maria Rebecca

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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. Copyright 1999 by The International Association for Research in Income and Wealth.

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Publisher Info
Article provided by Blackwell Publishing in its journal Review of Income & Wealth.

Volume (Year): 45 (1999)
Issue (Month): 4 (December)
Pages: 455-82
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Handle: RePEc:bla:revinw:v:45:y:1999:i:4:p:455-82

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0034-6586

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  1. Thesia I. Garner & Kathleen Short, 2005. "Developing a New Poverty Line for the USA: Are There Lessons for India?," Working Papers 378, U.S. Bureau of Labor Statistics. [Downloadable!]
  2. Howard White, 2005. "Child Poverty in Vietnam: Using Adult Equivalence Scales to Estimate Income-Poverty for Different Age Groups," Development and Comp Systems 0504016, EconWPA. [Downloadable!]
    Other versions:
  3. John Gibson, 2002. "Why Does the Engel Method Work? Food Demand, Economies of Size and Household Survey Methods," Working Papers in Economics 02/02, University of Waikato, Department of Economics. [Downloadable!]
    Other versions:
  4. Thomas F. Crossley & Krishna Pendakur, 2002. "Consumption Inequality," Department of Economics Working Papers 2002-09, McMaster University. [Downloadable!]
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