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Adult equivalence scales: a life-cycle perspective

Author

Listed:
  • James Banks

    (Institute for Fiscal Studies and University College London)

  • Richard Blundell

    (Institute for Fiscal Studies and University College London)

  • Ian Preston

    (Institute for Fiscal Studies and University College London)

Abstract

In any policy-orientated study of family welfare, it is inevitable that some comparison of welfare between households with different compositions will be required, and the theory of (adult) equivalence scales aims to formalise the way in which these comparisons may be made. An adult equivalence scale is defined as the proportionate increase in income per adult necessary to maintain a certain level of household living standard given some change in demographic circumstances (typically, the introduction of children). Values for such scales might be obtained in any of a number of ways. It is clear, for instance, that any national social security system can be interpreted as embodying one such set of scales; in the UK this is given by those reported in Table 1.

Suggested Citation

  • James Banks & Richard Blundell & Ian Preston, 1991. "Adult equivalence scales: a life-cycle perspective," Fiscal Studies, Institute for Fiscal Studies, vol. 12(3), pages 16-29, August.
    • Handle: RePEc:ifs:fistud:v:12:y:1991:i:3:p:16-29
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    Cited by:

    1. Bruce Bradbury, 2003. "The welfare interpretation of consumer equivalence scales," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 30(7), pages 770-787, July.
    2. Ian Gibbs & Peter Kemp, 1993. "Housing Benefit and Income Redistribution," Urban Studies, Urban Studies Journal Limited, vol. 30(1), pages 63-72, February.

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