Equivalised income

Disposable income adjusted for differences in household size and composition.

This adjustment is made on the basis of equivalence factors. The equivalence factor reflects the economies of scale resulting from having a shared household. Using the equivalence factors, all incomes are converted to the income of a single-person household. This allows for a comparison of the level of prosperity across different households. The equivalised income is a measure for the prosperity of (the members of) a household.

For this study, five equal groups were formed based on the equivalised income of the household of which the person is a member.