Adjusted market income of households

Part A - Short definition:

Sum of the market income of household members divided by the square root of household size.

Part B - Detailed definition:

Adjusted market income of households refers to the sum of market income of all members of the household that has been adjusted by a factor that accounts for household size. The adjustment factor takes into account the lower relative needs of additional household members, as compared to a person living alone, and is determined by using a scale that assigns a lower value to additional household members. The adjusted market income of households is thus computed by dividing the sum of market income of household members by the factor. Multiple equivalence scales are used in published data. The one chosen for use with the NHS income data is simply the square root of household size.

Reported in:

2011

Reported for:

Private households and population in private households

Question number(s):

Derived variable

Responses:

Not applicable

Remarks:

For details on the components of market income, see Market income.

See also Household, private and Household size.

This variable is used to help compute the Low-income measure of market income (LIM-MI).