Experimental Poverty Measures Summary of a Workshop (2005) / Chapter Skim
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11 3 Equivalence Scales Once a dollar figure for a reference family threshold is adopted, thenext question is how to set thresholds for families of differentsizes and compositions. It is widely accepted, for example, that the amount of money a four-person family requires to meet basic needs is different, and higher, than the amount needed by a single individual.
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12 EXPERIMENTAL POVERTY MEASURES One problem with the current implicit equivalence scale is that it takes into account only economies of scale related to food but not other items, such as shelter. It also contains a number of irregularities.
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EQUIVALENCE SCALES 13 based on research on the cost of children: the threshold of a single parent with a child should be roughly similar to one of a childless couple because shelter costs for a single parent with a child may exceed those of a childless couple, even if other costs (e.g., food) are lower for the former.
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