EconPapers    
Economics at your fingertips  
 

Estimating Extended Income Equivalence Scales from Income Satisfaction and Time Use Data

Melanie Borah ()
Additional contact information
Melanie Borah: Otto von Guericke University Magdeburg

Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, 2020, vol. 149, issue 2, No 13, 687-718

Abstract: Abstract In this paper, I estimate extended income equivalence scales from income satisfaction and time-use data contained in the German Socio-Economic Panel. Designed to capture the needs of additional household members, these scales account for both, increases in households’ money income and domestic production requirements. The estimation procedure determines equivalence weights in these two components separately by combing the subjective with the objective approach. The findings suggest greater monetary equivalence weights for adults than for children, whereas household production increases more strongly in the number of children than in the presence of an adult partner. Differences in relative needs tend to balance out in the extended income equivalence scale, assigning additional adults and children almost identical weights of about 45%. I illustrate the implications of these estimates for measures of income inequality using the same dataset.

Keywords: Equivalence scales; Income satisfaction; Time use; Household production (search for similar items in EconPapers)
JEL-codes: D13 I32 J13 J22 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s11205-019-02262-1 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:soinre:v:149:y:2020:i:2:d:10.1007_s11205-019-02262-1

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/11135

DOI: 10.1007/s11205-019-02262-1

Access Statistics for this article

Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement is currently edited by Filomena Maggino

More articles in Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2021-01-04
Handle: RePEc:spr:soinre:v:149:y:2020:i:2:d:10.1007_s11205-019-02262-1