The problem of the use of unit equivalence scales in the analysis of the income situation of households in the European Union

Abstract

The article says about equivalence scales used to compare the income situation of households of different size and demographic composition. The use of a single equivalence scale in the European Union (EU) is questionable due to the different situation of Member States households. The paper presents the results obtained on the basis of panel data on changes in spending share on typical public and private goods. Eurostat data was used on the shares of expenditure on housing, energy, food and soft drinks. The author examined whether the shares of these goods resembled in 2004–2013. It was observed a catch-up effect stronger by the weaker countries in terms of scale. The obtained results allow for moderate optimism regarding the future of the applicability of uniform equivalence scales in all EU countries.