Costs of children, etc., some measures:

• A UK equivalent income scale
• A New Zealand equivalent income scale
• Some US cost estimates
• Some Australian cost estimates

(Note that these measures consider different factors. The first considers cost by age in comparison to the cost of two adults (excluding housing costs), the second considers the cost by household composition in comparison to the cost of one adult, the third considers total costs of raising a child to age 18 in $US 1995)

1) A UK equivalent income scale

"In order to compare the incomes of lone parents in different circumstances, it is necessary to create a measure of equivalent income - a measure that takes account of the number of adults and the number and ages of children in the household. this is achieved by using the equivalence scale recommended by the DSS:

• Lone parent = 0.61
• Couple = 1.00
• Child aged 16-17 = 0.36
• Child aged 13-15 = 0.27
• Child aged 11-12 = 0.23
• Child aged 8-10 = 0.21
• Child aged 5- 7 = 0.18
• Child aged 2- 4 = 0.18
• Child aged 0- 1 = 0.09

By multiplying through by the above ratios income NET OF HOUSING COSTS [my emphasis] can be 'equivalised'"

From: Bradshaw J and Millar J (1991) Lone Parent Families in the UK, Department of Social Security research report No. 6, HMSO (P. 19)

2) A New Zealand equivalent income scale

Jensen's Revised Adult Equivalence Scale for New Zealand

Household composition Adult Equivalent

1 adult and:

• 0 children 1.00
• 1 child 1.40
• 2 children 1.75
• 3 children 2.06
• 4 children 2.34

2 adults and:

• 0 children 1.54
• 1 child 1.86
• 2 children 2.17
• 3 children 2.43
• 4 children 2.69

3+ adults and:

• 0 children 1.98
• 1+ children 2.54

From: Jensen J (1988) Income Equivalences and the Estimation of Family Expenditures on Children, D.S.W., Wellington

[Note that the first source has a base of 1 for two adults and no children, and the second has a base of one adult and no children. Any comparisons across scales must adjust for this.]

3) Some US cost estimates (Supplied by a contact in Canada, which is much appreciated)

From: Expenditure on Children by Families: 1994 Annual Report, U.S. Dept. of Agriculture, Center for Nutrition Policy and Promotion.

"WHAT IT COSTS TO RAISE A CHILD TO AGE 18" (most recent available data as of June 1995)

Husband/Wife Family:

• Making Under $32,800/yr..... $100,290
• $32,800-$55,500/yr............... $136,320
• $55,500-136,320/yr.............. $198,060

Single Parent Family:

• Making under $32,8000/yr.........$97,710.00
• $32,8000-more/yr........................$198,240.00

4) Some Australian cost estimates

Age Per Week

0-1 $193.74

2-4 $158.45

5-7 $171.39

8-10 $206.80

11-13 $229.92

From Lee D, (1989) published as software by AIFS, Melbourne.

Costs vary according to the number of children in the family, the parents' incomes and whether one or both parents are working. These figures are for a one-child one-income family with a gross of $654.80 per week. Figures are adjusted to AWE, August Quarter 1995.

[I assume that AWE means Average Weekly Earnings. SB]

See also: Costs of Children - Publications - Australian Institute of Family Studies (AIFS)

Stuart Birks

Last modified 23 May, 2000