helene_t, on 2017-January-11, 07:39, said:
Ideally, maybe, someone would find the function of household composition and income that correlates strongly with income-related social outcomes such as the ability to afford healthy food for the whole household etc. This would lead to "house-hold-composition adjusted median income", similar to age-adjusted mortality and purchasing power parities.
This is only useful if it can be established as a standard so that statistics can be compared between years and between countries.
It is a bit tricky to define exactly what a "household" is. What to do with students who register for some purposes at their parents' address and for other purposes at their own address? What to do with shared households (communes) which don't share food but do share kitchenware and utility bills?
OTOH, individual income is also a bit tricky. Does a housewife or other financially dependents really have zero income?
When "household income" resurfaced here, the first thing I did was to see if the figures had this square root adjustment. In that discussion of a few years ago, I initially misunderstood, not realizing the figures presented then were adjust ed by this square root. In the figures we have now, I think the figures are unadjusted. So first off, it is important in any of these things to say what the figures actually measure.
But now what to make of them.
From
http://economistsout...y-vs-household/
Quote
Impact of Age:
While the median household income is $51,371 in the US, this varies by age. Households with heads under 25 years old have a median income of $24,476 compared to $55,821 for those with heads aged 25 to 44 years old. Households headed by those aged 45 to 64 have the highest median incomes of $62,049, but those 65 and over have a median income of $36,743.
Impact of HH Size/Family Size:
For both households and families, there is a notable difference in typical income by size. While it is reasonable, to expect some causal relationship between age and income, the trend by size is likely a reflection of other causal patterns that happen to coincide with size.
For households, the impact is most seen between 1 and 2-person households. Median income for a one-person household is $27,237 while typical income for a two-person household is $58,121. Median income rises as household size increases, peaking at 4-person households with a median income of $75,343. For 5 or more person households, median income ranges from $64,747 to $69.691. In families, we see a similar pattern except that, by definition, there are no 1-person families. Median income for a two-person family is $56,646 and rises, peaking at $76,049 for 4-person families. From that point, median income declines to between $64,478 and $70,403 for larger families.
Start with "Median income for a one-person household is $27,237 while typical income for a two-person household is $58,121." If the two person household consisted of two adults, having the income double (slightly more than double) might, at first glance, sound right. Both work, and perhaps loners are not as successful as people who share a place, so sounds reasonable. But no, that's not at all what is going on. Many of those two person households consist of one adult and one child. The income for that household is presumably like the income for a one person household, except maybe less because the need for child care sometimes holds back professional advancement. And what about the one person households? There are 24 year old singles, my granddaughter for example, and there are eighty year old widows and widowers. And, for that matter, my granddaughter shares a house with something like five other young women. Is that one household or six households? One, I think. If so, that should bring up the 6 person household incomes, even though they are at the beginning of their careers since I believe they all have full time jobs.
So probably the median income for a two person adult household is a good deal more than double the median income for a one person household, and probably the median income for a one adult-one child household is close to the median income for a one person household. Or maybe less.
And so on. I have no idea why family income peaks at 76K for a family of size four. Higher income goes with higher education, and higher education goes with delayed child bearing? Maybe. Or maybe if a couple plans a large family they also plan to have the mother (ok one parent but usually it is the mother) stay at home? Beats me.
Data is no doubt useful, but handle with care.