Dictionary, Census of Population, 2016
Adjusted after-tax incomeDictionary, Census of Population, 2016
Adjusted after-tax income

Definition

'Adjusted after-tax income' refers to after-tax income of the statistical unit that is adjusted for economies of scale. The adjustment factor, also known as the equivalence scale, is the square root of the number of persons in the statistical unit. The adjusted after-tax income is calculated by dividing the after-tax income by this adjustment factor. The adjustment made to income addresses the fact that individuals living together can share resources and the marginal increase in need decreases as the number of individuals sharing resources increases.

Statistical unit(s)

Private household
Economic family
Person

Classification(s)

Not applicable

Reported in

2016 (100% data); 2011^{Note 1} (30% sample).

Reported for

Private households
Economic families and persons not in economic families in private households

Question number(s)

Derived variable

Responses

Not applicable

Remarks

See also after-tax income.

Adjusted after-tax incomes of households are used to determine the thresholds for Low-income measure, after tax (LIM-AT).

Adjusted after-tax incomes of economic families and persons not in economic families are used to derive the economic family after-tax income decile group. For persons not in an economic family, the adjusted after-tax income is equivalent to the after-tax income as the adjustment factor is equal to 1.

A similar variable existed for economic families and persons not in economic families in the 2006 Census. In that version, income was adjusted using an equivalence scale that was based on economic family composition.

For additional information about the data collection method, coverage, reference period, concepts, data quality and intercensal comparability of the income data, refer to the Income Reference Guide, Census of Population, 2016.

Note