REGIONAL POVERTY ANALYSIS TECHNICAL WORKSHOP Adult Equivalence Scales David Abbott (Regional Macroeconomic and Poverty Reduction Advisor UNDP Pacific Centre) REF: Working Paper 3.1

Purpose To agree on a standard basis for assessing household income/ consumption and undertaking poverty analysis at the individual level in households

Main Approaches Total Household Income/Consumption Per Capita Household Income/ Consumption Per Capita Adult Equivalent Income/ Consumption

Adult Equivalence Scale Each adult >15 years be counted as one adult equivalent Each child <15 years be counted as 0.5 of an adult equivalent Thus household with three adults and four children under 15 years would equal = 3 + (4 x 0.5) = 5 adult equivalents

Recommendation the adult equivalence scale currently being used for the analysis of poverty in PICs be confirmed as the most appropriate: Each adult >15 years in a household = 1 a.e. Each child <15 years in a household = 0.5 a.e