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Understanding economic inequality
Understanding economic inequality

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3.1 Income for whom?

Described image
Figure 8 An example of a household.

Income may be measured at either the individual or household level.

As the members of a household usually pool their resources, measuring income at the household level may be more indicative of living standards for the household as a whole.

For example, if there is a stay-at-home parent in a household their income may be very low or non-existent. However, their partner may receive a high income such that they experience a relatively high standard of living in their household.

But there may also be inequality within a family: household income level does not guarantee that income is distributed equally among the members of a household.