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

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

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

4. 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

5. 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