Impact of Consumption Unit’s Scale on Credibility of the Income Indicators in the Czech Republic
The comparison of income of a person has to consider the household composition. Additional persons realize economies of scale especially for expenditures related to housing. Therefore, so-called consumption units have been introduced. International scales have been produced by the OECD and Eurostat....
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Czech Statistical Office
2017-06-01
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| Series: | Statistika: Statistics and Economy Journal |
| Subjects: | |
| Online Access: | https://www.czso.cz/documents/10180/45606525/32019717q2015.pdf/7c57049b-b0d1-43c9-ad87-e40914f8f660?version=1.0 |
| Summary: | The comparison of income of a person has to consider the household composition. Additional persons realize economies of scale especially for expenditures related to housing. Therefore, so-called consumption units have been introduced. International scales have been produced by the OECD and Eurostat. The definition of consumption units has an impact on indicators of poverty as consumption units are used when equalized income is estimated. International scales should ensure comparability of results among countries, but they may not be appropriate for conditions in different countries.
The aim of the paper is to prepare methodological background for computation and then to estimate consumption units for the Czech Republic. Results are compared with international scales. In addition, the impact on indicators of poverty is assessed. Income and poverty indicators based on estimated consumption units should assure more accurate results for household's living in the Czech Republic. |
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| ISSN: | 0322-788X 1804-8765 |