Equivalisation

Equivalisation is a technique in economics in which members of a household receive different weightings. Total household income is then divided by the sum of the weightings to yield a representative income.

OECD equivalence scale

Also called the "Oxford scale" and the "old OECD scale". Mentioned by the OECD in the 1980s for possible use in countries without an established scale.

• 1.0 to the first adult;
• 0.7 to the second and each subsequent person aged 14 and over;
• 0.5 to each child aged under 14.

OECD-modified scale

Currently used by Eurostat.

• 1.0 to the first adult;
• 0.5 to the second and each subsequent person aged 14 and over;
• 0.3 to each child aged under 14.

Square root scale

Adopted by more recent OECD publications. The household income is divided by the square root of household size.

British scale

In the British households below average income calculation, before housing cost is figured, the weightings are as follows:^{[citation needed]}

• 0.67 for the first adult;
• 0.33 for every other adult or child above 14 years of age;
• 0.2 for every child under 14 years of age.

So the reference case is a childless couple. Alternative weightings can be based on formulae which decline with the number of people in a household.