Equivalent income is an income concept by which incomes of households of different types are made comparable by taking account of shared consumption benefits.
Equivalent income = the household's income divided by the number of consumption units in the household.
From 2002 the income distribution statistics have used the OECD's adjusted consumption unit scale recommended by Eurostat, the Statistical Office of the European Communities, where
- the first adult of the household receives the weight 1
- other over 13-year-olds receive the weight 0.5
- children receive the weight 0.3 (0 to 13-year-olds are defined as children)
The assumption is that income is evenly distributed inside the household between all household members in relation to the above-mentioned consumption need.
Statistics using the definition
Validity of the definition
- Valid until (31 December 2078)