The association illustrated

In this paper we explore the relation between differentials in size of households (preponderantly family households including one-person units) and disparities in income per household, per person, or per some version of consuming unit. The relation is important, because, in size distributions of income among the population, the most common unit is the household – a group of persons, usually family members, related by blood, marriage, or adoption, residing together and sharing arrangements for living. Inequality in size of household may “produce” (be associated with) inequality in income per household, in income per person, in income per consuming unit, or in all three. Conversely, if we begin with inequality in income per person or per consuming unit, we shall observe association with size of household and with income per household. In either approach, one would find a connection between differentials in size of household and disparities in income, the latter being substantial components in the observed size distributions of income among the population.

The treatment here can be only illustrative because of scarcity of relevant data and limitations of quality in the data available. Even the demographic data on the distribution of households by size are subject to undercount, differing for population subgroups with different household structure. The scarcer income data for households are far more defective.