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Semiparametric Base-Independent Equivalence Scales and the Cost of Children in Switzerland

  • Aline Bütikofer

How much additional income does a couple with two children need to be equally well-off as a childless couple? This question is important for public policy decisions on social benefits or child allowances. Since equivalence scales express the change in the cost of attaining a certain welfare level when the household size and composition varies, they provide an answer. This paper provides semiparametric estimates of consumption-based equivalence scales by applying the extended partially linear model to the Swiss Household Budget Survey 2000-2005. The results permit welfare comparisons across households and provide an indirect measure of the cost of children.

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Article provided by Swiss Society of Economics and Statistics (SSES) in its journal Swiss Journal of Economics and Statistics.

Volume (Year): 148 (2012)
Issue (Month): I (March)
Pages: 1-35

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Handle: RePEc:ses:arsjes:2012-i-1
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  2. Yatchew, Adonis & Sun, Yiguo & Deri, Catherine, 2003. "Efficient Estimation of Semiparametric Equivalence Scales with Evidence from South Africa," Journal of Business & Economic Statistics, American Statistical Association, vol. 21(2), pages 247-57, April.
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