Jensen Equivalised Annual Household Income

Variable Description

Name

jen_hhold_income ^en-NZ

Label

Jensen Equivalised Annual Household Income ^en-NZ

Description

Jensen Equivalised Annual Household Income is a ranked measure of income based on the number of members in a household and whether they are an adult or a child.

The scale is constructed so that a two-adult household has a rating of 1. Households with fewer members score less than 1, those with more score more than 1. The scale also accounts for children being likely to require less income than adults to maintain a similar standard of living. Jensen Equivalised Annual Household Income is calculated for individual households by reweighting household income to a two-adult household.

For example, if a two adult household included a seven-year-old child, its Jensen Rating would increase to 1.19 and its Jensen income would be: $35,000 = $29,400 (rounded to nearest $100). for more information see here.

Jensen Equivalised Annual Household Income - equivalence scale
Household type	Jensen Scale
One adult	0.65
One adult, one child	0.91
One adult, two children	1.14
Couple with no children	1.00
Two adults, one child	1.21
Two adults, two children	1.41
Two adults, three children	1.58
Three adults	1.29
_{This table does not show all household types}