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Equivalised disposable income

The equivalised disposable income is the total income of a household, after tax and other deductions, that is available for spending or saving, divided by the number of household members converted into equalised adults. It is calculated by dividing the value of the family income by an appropriate correction coefficient (equivalence scale) that allows to take into account the effect of the economies of scale and to make the income levels of differently composed households directly comparable. In order to reflect the differences in the households' size and composition, the total (net) household income is divided by the number of 'equivalent adults', using a standard (equivalence) scale: the modified OECD scale. This scale gives a weight to all members of the household (and then adds these up to arrive at the equivalised household size): 1.0 to the first adult; 0.5 to the second and each subsequent person aged 14 and over; 0.3 to each child aged under 14. The income can be calculated with or without imputed rents.

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European Union Statistics on Income and Living Conditions (EU-SILC)

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