Subjective equivalence scales in Eastern versus Western European countries

Mysíková, Martina; Želinský, Tomáš; Garner, Thesia I.; Fialová, Kamila

Abstract

We show that economies of scale estimated individually for each EU country differ from the officially adopted OECD-modified scale; the differences across the countries further confirm the prevailing East-West disparity. Using the minimum income question in the 2019 EU-Statistics on Income and Living Conditions survey, we demonstrate that applying the estimated country-specific subjective equivalence scales, instead of the uniform OECD-modified scale, results in up to a 6 pp change in the at-risk-of-poverty rate. If inadequate equivalence scales are used, the equivalised income fails to inform the statistics of income poverty and prevents national social policies from being correctly targeted.

Citation

Mysíková, M., Želinský, T., Garner, T. I., & Fialová, K. (2022). Subjective equivalence scales in Eastern versus Western European countries. Contemporary Economic Policy, 40(4), 659-676. https://doi.org/10.1111/coep.12579

• Journal Article Type: Article
• Acceptance Date: Jun 10, 2022
• Online Publication Date: Jun 30, 2022
• Publication Date: 2022
• Deposit Date: Jul 28, 2022
• Publicly Available Date: Jul 1, 2024
• Journal: Contemporary Economic Policy
• Print ISSN: 1074-3529
• Electronic ISSN: 1465-7287
• Publisher: Wiley
• Peer Reviewed: Peer Reviewed
• Volume: 40
• Issue: 4
• Pages: 659-676
• DOI: https://doi.org/10.1111/coep.12579
• Public URL: https://durham-repository.worktribe.com/output/1196530