Concept

Equivalisation

Résumé
Equivalisation is a technique in economics in which members of a household receive different weightings. Total household income is then divided by the sum of the weightings to yield a representative income. Equivalisation scales are used to adjust household income, taking into account household size and composition, mainly for comparative purposes. See also equivalizing. OECD equivalence scale This is also called the "Oxford scale" and the "old OECD scale". Mentioned by the OECD in the 1980s for possible use in countries without an established scale. *1.0 to the first adult; *0.7 to the second and each subsequent person aged 14 and over; *0.5 to each child aged under 14. OECD-modified scale The OECD-modified scale is widely used across Europe and used by the Statistical Office of the European Union (Eurostat). It adjusts household income to reflect the different resource needs of single adults, any additional adults in the household, and children
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