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.
In the British HBAI in before housing cost figures the OECD weightings are as follows:
- 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 formulas which decline with the number of people in a household.